Document background
The Co-Founder Equity Agreement is a critical document used when establishing or formalizing the relationship between multiple founders of a Canadian company. It is typically implemented during company formation or early stages when founders agree to divide equity and establish their respective rights and responsibilities. The agreement ensures compliance with Canadian corporate law, including the Canada Business Corporations Act and provincial securities regulations. It covers essential elements such as equity distribution, vesting schedules, intellectual property rights, confidentiality provisions, and mechanisms for resolving potential disputes. This document is particularly important for protecting all parties' interests and preventing future disagreements by clearly documenting the founders' understanding and expectations at the outset of their business relationship.
