Document background
The Co-Founder Equity Agreement is essential when establishing or formalizing the relationship between founding members of an Australian company. This document is typically used at company formation or when new co-founders join, setting out clear terms for equity distribution, vesting arrangements, and mutual obligations. It ensures compliance with Australian corporate law requirements, including the Corporations Act 2001 (Cth) and relevant state regulations. The agreement covers critical aspects such as share allocation, vesting schedules, roles and responsibilities, confidentiality, non-compete provisions, and exit mechanisms. It's particularly crucial for startups and new businesses to have this agreement in place to prevent future disputes and provide a clear framework for the founding team's relationship.
