Getting together with a friend or two and creating a new business is an exciting time in any entrepreneur’s life. However, Co-Founders are often so busy building and running their new business that they skip a hugely important step, the Co-founder Agreement. A Co-founder Agreement is a contract between Co-Founders setting out the ownership, initial investments and responsibilities of each Co-Founder. This agreement also safeguards you in the case of a dispute, as it can provide protection to show what the co-founder agreed too.
What does the Co-Founder Agreement cover?
Equity breakdown and initial capital contributions
Roles and responsibilities of each Co-Founder
Management and approval rights
Non-compete, confidentiality and intellectual property and
Resignation, dissolution and removal of directors