Document background
The Founder Equity Agreement is a crucial document used when establishing a new company or formalizing relationships between existing founders in New Zealand. It is typically implemented during company formation or early stages of operation, when two or more founders need to clearly define their equity stakes, responsibilities, and obligations. The agreement ensures compliance with New Zealand corporate law, particularly the Companies Act 1993, while addressing key aspects such as share vesting, transfer restrictions, intellectual property rights, and exit provisions. This document is essential for protecting founder interests, preventing future disputes, and providing a solid foundation for potential future investment or company sale. The Founder Equity Agreement also typically includes provisions for decision-making processes, confidentiality obligations, and mechanisms for resolving potential conflicts between founders.
