Co-founder agreement | Bhavpreet Singh Soni | LawSikho | Business
An agreement executed between all the co-founders of a company that lays down the ownership pattern, rights, responsibilities, dispute resolution, and other terms and conditions of the business that is to be carried out by the co-founders is called a co-founder’s agreement.
A co-founder’s agreement is a mandate before starting any business or company involving more than one founder. Similarly, an airline company with more than one co-founder will require the agreement to safeguard the rights and liabilities of each other co-founders involved.
Reasons to execute a co-founder’s agreement
Let’s have a close look at some of the important clauses we should keep in mind while drafting a co-founder’s agreement for an airline company:
Firstly, the co-founder’s agreement demarcates the responsibilities and duties of each of the founders which aid in the decision-making process. Based on the strengths and weaknesses of the individuals, each of them is assigned certain roles and responsibilities.
Secondly, this agreement helps in framing the strategies and also helps the founders to plan the actions that are required to be taken when any member desires to quit the company.
Thirdly, this agreement helps in safeguarding the intellectual property under the name of the company and avoids any errors that may happen while assigning the ownership of copyright to an individual.
Fourthly, this agreement eases the carrying on of future transactions which further improves the performance of the business.
Read More: https://blog.ipleaders.in/drafting-co...
_________________________________________________________________
LawSikho Official Website: https://lawsikho.com/
Follow us on the following social media platforms:
Facebook - / lawsikho
Instagram - / lawsikho
LinkedIn - / lawsikho
Twitter - / lawsikho
#lawsikho #business