The Founders Equity Agreement is a crucial legal document used when establishing a new company or formalizing relationships between existing founders in India. It becomes necessary when two or more individuals join forces to create a business venture and need to clearly define their ownership stakes, responsibilities, and rights. This agreement, governed by Indian corporate law including the Companies Act 2013, typically comes into play during company formation or early-stage operations. It includes essential provisions for equity distribution, vesting schedules, transfer restrictions, and governance mechanisms, serving as a roadmap for founder relationships and dispute resolution. The document is particularly important in the Indian startup ecosystem, where clear founder agreements are vital for future fundraising and growth opportunities.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identification of all founding members and the company details
2. Background: Context of the agreement, including company formation purpose and founders' intent
3. Definitions: Definitions of key terms used throughout the agreement
4. Equity Structure: Details of initial shareholding percentages and share class specifications
5. Roles and Responsibilities: Defined roles of each founder and their primary responsibilities in the company
6. Vesting Schedule: Terms of equity vesting including timeline and conditions
7. Transfer Restrictions: Limitations on transfer of shares and right of first refusal provisions
8. Intellectual Property Rights: Assignment of IP rights to the company and protection of company IP
9. Confidentiality: Non-disclosure obligations regarding company information
10. Decision Making: Voting rights and major decision-making procedures
11. Exit Provisions: Terms governing founder exit, including good/bad leaver provisions
12. Dispute Resolution: Process for resolving disputes between founders
13. Governing Law: Specification of Indian law as governing law and jurisdiction
1. Non-Compete: Restrictions on founders engaging in competing businesses, used when specific competitive concerns exist
2. Tag-Along Rights: Rights of minority founders to join in sale of shares, important for founder protection
3. Drag-Along Rights: Rights to force minority shareholders to join in sale, useful for future exit scenarios
4. Investment Commitments: Details of any promised capital contributions, used when founders are investing money
5. Founder Loans: Terms of any loans provided by founders to the company, if applicable
6. Dead-Lock Resolution: Special provisions for resolving situations where founders cannot agree, useful for 50-50 partnerships
7. Family Succession Rights: Rights regarding transfer of shares to family members, important for family-involved businesses
1. Schedule 1: Share Capital Structure: Detailed breakdown of shareholding pattern and share classes
2. Schedule 2: Founders' Details: Complete information about founders including contact details and shareholding
3. Schedule 3: Vesting Schedule Details: Comprehensive vesting timeline and milestones
4. Schedule 4: IP Assignment Details: List of intellectual property being assigned to the company
5. Schedule 5: Reserved Matters: List of decisions requiring special majority or unanimous consent
6. Appendix A: Company Business Plan: Initial business plan and objectives
7. Appendix B: Roles and Responsibilities Matrix: Detailed matrix of founder roles, responsibilities, and reporting structures
Find the exact document you need
Vesting Agreement Startup
An Indian law-governed agreement that establishes the terms and schedule for gradually earning equity ownership rights in a startup company.
Download
Founders Equity Agreement
An Indian law-governed agreement establishing equity distribution, rights, and obligations between company founders.
Download
Founder Stock Restriction Agreement
An Indian law-governed agreement that establishes restrictions and vesting conditions on founder-owned shares, ensuring alignment between founder and company interests.
Download
Founders Contract
An Indian law-governed agreement establishing rights, responsibilities, and relationships between company founders, including shareholding, management, and operational frameworks.
Download
Startup Founder Employment Agreement
An Indian law-governed employment agreement between a startup and its founder, combining standard employment terms with founder-specific provisions including equity arrangements and corporate governance.
Download
Pre Incorporation Founders Agreement
An Indian law-governed agreement establishing rights and obligations between founders before company incorporation.
Download
Startup Equity Agreement
An Indian law-governed agreement detailing terms and conditions for equity investment in a startup, including share subscription, investor rights, and governance provisions.
Download
Startup Advisor Equity Agreement
An Indian law-governed agreement defining the terms of engagement and equity compensation between a startup and its advisor.
Download
Co Founder Separation Agreement
An Indian law-governed agreement documenting the terms and conditions for a co-founder's separation from a business entity, including share transfers, IP rights, and financial settlements.
Download
Co Founder Exit Agreement
An Indian law-governed agreement facilitating the formal exit of a co-founder from a company, including share transfers and post-exit obligations.
Download
Founder Shareholder Agreement
An Indian law-governed agreement that establishes rights, obligations, and relationships between founding shareholders of a company, ensuring proper corporate governance and protecting founders' interests.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)