A Co-Founders or Founders Agreement is an agreement entered between all the founders of a company. Founders Agreement defines the manner in which the co-founders have to function in their company with defined terms and conditions. It lays down certain important functions regarding the aspects of business, roles and responsibilities, rights and liabilities of each founder, non-compete clause, confidentiality, dispute resolution, vesting rights, termination, etc.
The Founders Agreement is very important as it outlines the duties and obligations of each founder of the company which safeguards the business of the Company and helps to remove future problems among founders with respect to the smooth functioning of the company.
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