Document background
The Co-Founder Contract is a fundamental legal document used when two or more individuals come together to establish a business venture in Pakistan. This agreement is essential at the early stages of company formation, ideally being executed before or during the company's incorporation process. It provides a comprehensive framework that governs the relationship between co-founders, addressing crucial aspects such as equity distribution, roles, responsibilities, and decision-making processes. The document must comply with Pakistani legislation, including the Companies Act 2017 and relevant corporate laws, while establishing clear mechanisms for business operations, dispute resolution, and potential exit scenarios. It serves as a critical risk-management tool by clearly documenting all parties' expectations, rights, and obligations, thereby preventing future misunderstandings and conflicts.
