Document background
The Co-Founder Agreement is essential when two or more individuals join forces to establish a business venture in Canada. This document should be created during the early stages of company formation, ideally before or during the incorporation process. It provides a comprehensive framework for the business relationship, addressing critical elements such as equity distribution, vesting schedules, roles and responsibilities, and dispute resolution mechanisms. The agreement must comply with Canadian federal laws, including the Canada Business Corporations Act, as well as relevant provincial legislation. It serves as a crucial risk management tool by clearly defining expectations, protecting intellectual property, and establishing protocols for various business scenarios, including potential exits or disputes.
