A Founders’ Agreement is a simple document that describes the ownership pattern, responsibilities of each founder, powers of the founders, and the relationship among the owners. Other clauses like non-compete, exit, assignment of IPR and loans from founders can also be added to avoid ambiguities. A statement on company’s goals and business pal can also be added.
Benefits of Founders’ Agreement
Exactness of Relationship
The founder’s agreement removes any ambiguity among the founders. Thus, this agreement provides clarity on terms among the founders in absence of a formal legal arrangement.
Determination of Roles
The ultimate benefit of a founders’ agreement is the clear & perfect determination of roles and responsibilities.
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