Document background
A Co-Founder Vesting Agreement is essential when establishing a new company or formalizing arrangements between existing co-founders in Australia. This document is typically implemented at the company's formation or during early stages to ensure founders' interests remain aligned with the company's long-term success. It outlines how and when founders earn their equity, protecting all parties if a co-founder leaves the business. The agreement must comply with Australian corporate law, particularly the Corporations Act 2001 (Cth) and relevant tax legislation. It's especially crucial for startups seeking investment, as investors often require vesting arrangements to ensure founder commitment. The document addresses key aspects such as vesting schedules, leaver provisions, share restrictions, and founder obligations.
