The company’s founders should have an agreement among themselves even before creating an entity. Founders’ agreements are a product of conversations which should take place among a company’s founders at the early stages of formation rather than later in the life of a company. The goal of these conversations is to have an open and honest discussion about attitudes, fears, and aspirations of individuals involved with the startup, so as to minimize the likelihood of debilitating surprises as the company continues to evolve.
There is Provisions Which Could be Addressed in a Founders’ Agreement :-
a. Transfer of ownership.
b. Ownership structure.
d. Decision-making and dispute resolution.
e. Representations and warranties.
f. Choice of law.
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