A founders agreement is a legally binding agreement between the founders of a company that outlines the rights, responsibilities, and obligations of each founder. In India, a founders agreement is an essential document for any startup or new business venture.WhatsApp
A founders agreement is a legally binding agreement between the founders of a company that outlines the rights, responsibilities, and obligations of each founder. In India, a founders agreement is an essential document for any startup or new business venture.
- Clarifies Roles and Responsibilities: A founders agreement helps in defining the roles and responsibilities of each founder. It ensures that there is clarity on the contributions of each founder towards the business.
- Avoids Conflicts and Disputes: The founders agreement helps in avoiding conflicts and disputes between the founders. It clearly defines the decision-making process, ownership structure, and dispute resolution mechanism.
- Protects Intellectual Property: The founders agreement can include clauses related to the protection of intellectual property. This can help in safeguarding the company's intellectual property rights.
- Facilitates Fundraising: A founders agreement can make the fundraising process easier by providing clarity to investors on the ownership structure, roles, and responsibilities of the founders.
- Increases Credibility: A founders agreement increases the credibility of the company among investors, employees, and other stakeholders. It shows that the founders have a clear plan and are committed to the success of the business.
- Ownership Structure: This clause defines the percentage of ownership of each founder in the company.
- Vesting Schedule: This clause specifies the vesting schedule of each founder's shares. It outlines the conditions under which the shares will be fully vested.
- Roles and Responsibilities: This clause defines the roles and responsibilities of each founder. It ensures that there is clarity on the contributions of each founder towards the business.
- Decision-Making Process: This clause outlines the decision-making process for the company. It defines the roles of the founders, the board of directors, and any other key stakeholders.
- Confidentiality: This clause specifies the confidentiality obligations of the founders. It ensures that confidential information related to the business is not shared with third parties.
- Intellectual Property: This clause defines the ownership and protection of intellectual property rights related to the business.
- Identification Proof: Each founder needs to provide their identification proof, such as a PAN card or passport.
- Address Proof: Each founder needs to provide their address proof, such as a utility bill or driving license.
- Shareholding Structure: The shareholding structure of the company needs to be provided, including the percentage of ownership of each founder.
- Board Resolutions: Any board resolutions related to the company's formation, such as the appointment of directors or the adoption of the memorandum and articles of association.
Why approach LAWYASA?
- Expertise: Lawyasa has a team of experienced lawyers who specialize in various fields of law, including family law, property law, and corporate law. We can provide you with expert legal advice and guidance on your specific legal issue.
- Convenience: Lawyasa is an online legal platform, which means that you can access our services from anywhere, at any time. You can consult with our lawyers, get legal documents prepared, and even file a case in court, all from the comfort of your own home.
- Cost-effective: Lawyasa offers cost-effective legal services, which can save you a lot of money compared to traditional law firms. We offer transparent pricing, so you know exactly how much you will be paying for our services upfront.
- Customised solutions: Lawyasa provides customised legal solutions tailored to your specific needs. We take the time to understand your legal issue and provide you with the best possible legal advice and representation.
- Customer support: Lawyasa provides excellent customer support. Our team is available to assist you with any questions or concerns you may have, and keep you informed throughout the entire legal process.
How can LAWYASA assist?
Lawyasa can assist you in drafting and delivering a founders agreement in several ways. Here are some of the ways in which Lawyasa can help:
- Consultation: Lawyasa can provide consultation to the founders on the clauses that should be included in the founder's agreement. This consultation can help the founders to understand the legal implications of the clauses and ensure that the agreement is comprehensive and effective.
- Drafting: Lawyasa can draft the founder's agreement based on the inputs provided by the founders. The drafting process includes incorporating the necessary clauses and legal language to ensure that the agreement is legally enforceable.
- Review: Lawyasa can review the founder's agreement to ensure that it is comprehensive, legally enforceable, and in line with the requirements of the Indian legal system.
- Signing and Delivery: Once the founder's agreement is drafted and reviewed, Lawyasa can assist in getting the agreement signed by all the founders. The signed agreement can then be delivered to each founder, and a copy can be retained by Lawyasa for safekeeping.
- Legal Support: In case of any disputes or conflicts related to the founder's agreement, Lawyasa can provide legal support to the founders. This legal support can include mediation, arbitration, or litigation, depending on the nature of the dispute.
Frequently Asked Questions
Q: Can a founder be forced to sell their shares if they breach the founders agreement?
Q: Can a founders agreement be amended after the company is incorporated?
Q: What happens if a founder dies or becomes incapacitated?
Q: Can a founder be removed from the company if they breach the founders agreement?
Q: Can a founders agreement be enforced against a third party?
Q: What happens if a founder wants to sell their shares?
Q: Can a founder be held personally liable for the actions of the company?
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