"Founder Agreement" is an agreement which is drawn in between the founders/promoters of a company on crucial problems in concerns to their company. To detail good understanding, obligations, rights and responsibilities of each party to the FA and align their objectives. To keep a record which will avoid uncertainties in future? To attend to allotment and circulation of resources.
When to go into such contract?
- At the time of tabling the idea;
- At the time of incorporation;
- At the time of capitalization.
Requirement Terms & Conditions of a FA
Equity Investment and Shareholding Structure: Who should hold how much shares? Equity needs to be divided based on contribution of each of the creators respectively. Board Management and Governance: How many creators to be on the Board and why? How the company is to be governed?
Roles & Responsibilities: Divide functions and obligations on top management. Shareholders' Meeting: Frequency of conferences, licensed people in the conferences. Fresh Issue and Transfer of Shares: Issues such as Lock-in durations, creator offering his stakes, Right of First Refusal, transfer upon death, and so on bankruptcy lawyer reviews
In whichever nation we might live we are bound by the laws of the place. Every nation state has its own set of laws those individuals, companies and every alternate system need to follow. The residents need to restrict their activities according to the needs of the state and nation. In any nation, the Supreme Court is the guardian of the legal system. All activities need to be given the notification of the Supreme Court and its secondary judicial systems. Let us go over the system briefly.
As we currently went over, the Supreme Court is the greatest system of any nation. It is the daddy legal provider. Even the head of the state or the nation needs to comply with its guidelines. The judge of this court has the last word in every matter. Suppose it is a criminal case where the wrongdoer has been condemned and has been granted capital penalty by the secondary court. Because case, he might interest the Supreme Court. If the court discovers him guilty he might be penalized or he might be pardoned. If penalized he cannot appeal any even more.
If there is a dispute in between the center and the state of any nation the choice of the Supreme Court dominates. If a person feels that his/her essential rights have been blocked by anyone, group, or company he or she might bring it to the notification of the greatest court of the land.