tiktok���˰�

A Founders Agreement sets out the core rules and expectations between people starting a business together in New Zealand. It covers key issues like ownership splits, roles and responsibilities, decision-making powers, and what happens if someone wants to leave the venture.

Think of it as your startup's constitution - it protects everyone's interests and helps prevent costly disputes later. While not legally required under NZ company law, having one makes it much easier to handle major business decisions, bring in new investors, or deal with unexpected challenges. The agreement can evolve as your business grows, but getting these basics in writing early gives your venture a solid foundation.

Put a Founders Agreement in place right when you start planning your business venture with others - before money changes hands or serious work begins. The early startup phase, when everyone's excited and aligned, is the perfect time to agree on fundamental issues like equity splits, voting rights, and exit procedures.

Many Kiwi startups create this agreement during their first formal planning meetings or when preparing to register their company. Getting it done early helps prevent messy disputes that often arise once the business gains value or faces challenges. It's especially crucial when co-founders are contributing different things - some putting in cash, others providing skills or intellectual property.

• Founder Employment Agreement: Sets terms for founders who will also be employees, including salary, benefits, and work expectations
• Founder Equity Agreement: Focuses specifically on share ownership, distribution, and future equity allocation
• Founder Shareholder Agreement: Comprehensive document covering voting rights, share transfers, and company governance
• Co Founder Vesting Agreement: Establishes how founders earn their shares over time to ensure long-term commitment
• Co Founder Separation Agreement: Details the process and terms when a founder exits the business

• Company Founders: The primary users and signatories who create and agree to the terms, usually including everyone with a significant ownership stake
• Business Lawyers: Draft and review the agreement to ensure it meets NZ legal requirements and protects all parties' interests
• Company Directors: Often the same as founders initially, but may include independent directors who need to understand and enforce the agreement
• Early Investors: Review the agreement during due diligence to understand founder relationships and commitments
• Company Secretary: Maintains the agreement as part of official company records and ensures compliance with its terms

• Founder Details: Collect legal names, roles, and contact information for all founders, plus any existing company registrations
• Ownership Structure: Document each founder's initial capital contribution, equity split, and any vesting conditions
• Role Definition: List key responsibilities, time commitments, and salary expectations for each founder
• IP Assignment: Identify existing intellectual property and how new IP will be handled
• Exit Planning: Agree on procedures for founder departures, share transfers, and company sale scenarios
• Decision Framework: Define voting rights and processes for major business decisions
• Template Selection: Use our platform to generate a legally sound agreement that covers all these elements

• Party Identification: Full legal names, addresses, and roles of all founders and the company entity
• Capital Structure: Initial contributions, share allocation, and vesting schedules aligned with NZ Companies Act
• Governance Terms: Decision-making processes, voting rights, and board composition rules
• Confidentiality: Protection of trade secrets and intellectual property under NZ IP laws
• Exit Provisions: Share transfer restrictions, right of first refusal, and founder departure procedures
• Dispute Resolution: Clear process for handling disagreements under NZ jurisdiction
• Amendment Rules: Procedures for modifying the agreement with proper consent
• Execution Block: Formal signing section meeting NZ legal requirements

A Founders Agreement differs significantly from an Business Acquisition Agreement in several key ways. While both are crucial business documents, they serve different purposes and come into play at different stages of a company's lifecycle.

• Timing and Purpose: Founders Agreements are created at business formation to establish initial relationships, while Business Acquisition Agreements facilitate the purchase of an existing business
• Parties Involved: Founders Agreements are between co-founders starting a venture together, while Business Acquisition Agreements involve buyers and sellers of established businesses
• Scope of Terms: Founders Agreements focus on internal governance, equity splits, and ongoing relationships, while Business Acquisition Agreements detail purchase price, asset transfers, and handover procedures
• Duration: Founders Agreements govern ongoing relationships throughout the company's life, while Business Acquisition Agreements primarily cover the transaction period and immediate aftermath