Founders agreement

Founder’s Agreement in Jaipur

A Founder’s Agreement can be defined as a contract which is entered into by the co-founders of a company. This contract discusses the different aspects related to the company such as the duties, roles and responsibilities, the equity vested in them, and other issue related to business.

The founder’s agreement serves in the sense that it specifies the exact role every founder has to play in the governance and managing of the company, thus avoiding any ambiguity or conflict between the founders regarding their duties and powers.

When this happens the organization is able to work smoothly and without any conflict between the founders. Thus the organization is able to achieve its goals and the vision of its founders in an efficient and harmonious way paving the path of success for the organization as well as its founders.

Usually, such terms which are discussed in the founder’s agreement remain un-discussed and vague if there is nothing such as an agreement between the founders. The vagueness and ambiguity of these things lead to arguments and conflicts which hamper the running and progress of the organization as conflicts do not ever sit well with anyone.

So it is better than before or during the incorporation process of the organization, the founders discuss openly the terms with each other and then after the draft a mutual agreement known as founder’s agreement.

The essential elements of a proper founder’s agreement are the objective and visions of the organization, the ownership percentage of each founder, initial capital investment, roles and responsibilities of each founder, the salary the founders are entitled to, and the aspects in case of a dissolution or winding up of the organization.

We at Company vakil help you to draft a founder’s agreement from Jaipur. Jaipur is one of the royal cities in Rajasthan. If one visits Jaipur, some of the must-to-visit places in the city includes the Amer Fort, Jal Mahal, Hawa Mahal, City Palace, Nahargarh Fort, Jantar Mantar, Birla Mandir, Jaipur zoo, Sisodiya Rani Bagh, etc. Among these places, Amer Fort and Jantar Mantar are the UNESCO world heritage sites. These royal sites mesmerize anyone who pays a visit to the pink city.

Reasons to have a co Founder’s Agreement in Jaipur

A Founder’s Agreement in Jaipur is a very important document which is necessary to be drafted and incorporated in the organization to facilitate the smooth running and efficient conflict free working of the organization. It is recommended to take the help of a professional to draft the founder’s agreement as it is a very vital document. The reasons to have a co Founder’s Agreement in Jaipur are:

1. A founder’s agreement specifies the roles and responsibilities held by each founder clearly.
2. It greatly reduces the chances of having any sort of conflict between the founder’s as all the powers and responsibilities have been already specified.
3. If there is no such agreement it is possible for one partner to walk away and thus use his knowledge of the business for competition.
4. The absence of the founder’s agreement also makes it possible for one partner to take advantage of the other.
5. The Founder’s agreement is a must have in order to ensure the smooth and hassle-free working of the organization.

Process for Drafting a co Founder’s Agreement in Jaipur

The Founder’s Agreement in Jaipur is a vital document in order to make sure that the organization is able to work smoothly and without any hassle. Therefore, it is suggested to hire a professional for drafting the founder’s agreement properly as they have effective knowledge and know-how of legal processes and factors. The process of drafting a Founder’s Agreement in Jaipur is:

1. Prior to drafting the agreement, it is necessary that the founder’s openly discussed with each other all the terms and aspects of the agreement and thus mutually reach a final stand.
2. The roles and responsibilities held by each of the founders are to be specifically established.
3. The division or allocation of ownership between the founders is the next step so that everyone can mutually decide what percentage of the organization does everyone own.
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5. The vision or the objective of the organization and the founders’ role in it needs to be expressly determined.
6. After deciding on all these terms and aspects, they are laid down in the firm and the written document known as Founder’s Agreement is thus drafted.