Document background
The Founders Collaboration Agreement is a crucial document used when two or more individuals decide to establish a business venture together in Hong Kong. This agreement serves as the cornerstone of the founding team's relationship, typically created before or during company incorporation. It should be implemented when founders are ready to formalize their business relationship but before significant business operations commence. The document addresses key aspects such as equity distribution, roles and responsibilities, decision-making processes, and intellectual property rights, all within the context of Hong Kong's legal framework. The agreement helps prevent future disputes by clearly documenting the founders' understanding and commitments, incorporating relevant provisions from Hong Kong's Companies Ordinance and common law principles. It's particularly important given Hong Kong's status as a major business hub and its unique legal system that combines common law with local legislation.
