Document background
The Founders Agreement with Vesting is essential when establishing a new company in Canada, typically used during or shortly after incorporation. This document is crucial for protecting all founders' interests and ensuring long-term commitment through equity vesting provisions. It addresses key aspects such as share allocation, voting rights, roles and responsibilities, and intellectual property rights, while complying with Canadian corporate law requirements. The agreement becomes particularly important when there are multiple founders with different levels of contribution, when seeking external investment, or when planning for potential future scenarios such as founder exits or company sale. The vesting provisions help prevent early departures and ensure equitable distribution of equity based on continued contribution to the company's growth.
