A co-founders agreement is the base agreement which records the inter-se relationship between 2 or more co-founders or co-promoters of any company. With changing times, it has now become a norm for the founders of the start-up companies to enter into Co-Founders agreement as it not only results in clarity on respective rights and obligations but also gives an insight to the prospective investors who intend to invest money in the Company regarding the working arrangements within the Company. Further, these agreements establish a formal documented relationship between the co-founders, which is quintessential for any professionally managed entity, more when they look up to raise funds from outside sources. To give a broad idea regarding the contents of a Co-Founders agreement, the following clauses may be relevant to be noted:
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