Shareholders Agreement Template

For any startup, having a solid founders agreement is crucial to establish clear rules and expectations among the founding members. At BizzLibrary.com, we understand the importance of a well-drafted founders agreement that safeguards the interests of the company and its shareholders. Our founders agreement template, available in DOCX format, is designed to help you create a legally binding agreement that addresses important aspects of your startup journey.

What is a Founders Agreement?

A founders agreement is a legally binding contract between the founders of a company. It sets out the rights, responsibilities, and obligations of each founder and provides guidelines on how decisions will be made, equity distribution, roles, and other important aspects of the startup venture. This agreement serves as a foundation for the future success of the company.

Key Elements of a Founders Agreement:

A well-drafted founders agreement includes the following key elements:

1. Ownership and Equity Distribution: The agreement outlines the initial ownership percentages among the founders and establishes a mechanism to adjust these percentages as the company grows or when new members join.
2. Roles and Responsibilities: Clearly defining the roles and responsibilities of each founder helps to avoid conflicts and ensures that everyone understands their specific duties within the company.
3. Decision-Making: The agreement specifies how decisions will be made within the company, whether through unanimous consent, majority vote, or other mechanisms. It also identifies major decisions that require the unanimous agreement of all founders.
4. Intellectual Property: It is important to address intellectual property ownership and include provisions that protect the company's ownership of work created by founders during their involvement with the company.
5. Confidentiality and Non-Compete: Confidentiality agreements and non-compete clauses ensure that founders do not disclose sensitive information or engage in competing activities that may harm the company.
6. Dispute Resolution and Termination: Including mechanisms for resolving conflicts and procedures for the termination of the agreement and the departure of founders helps mitigate potential issues in the future.

Download Your Founders Agreement Template Now

Don't embark on your startup journey without a founders agreement in place. Download our professionally crafted founders agreement template in DOCX format from BizzLibrary.com today. It provides the necessary framework to establish a strong and successful business foundation.

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