Document background
A Founder Vesting Agreement is a crucial document used when establishing or restructuring ownership in Australian companies, particularly startups and growing businesses. This agreement is implemented to protect the company and other stakeholders by ensuring founders remain committed to the business through a structured vesting schedule. It's particularly important when seeking investment, as investors often require vesting arrangements to be in place. The document typically includes detailed vesting schedules, provisions for different exit scenarios, and mechanisms for handling early departure situations. It must comply with Australian corporate law requirements, including the Corporations Act 2001 (Cth) and relevant tax regulations, particularly regarding employee share schemes and equity arrangements. The agreement is often put in place at company formation or before significant investment rounds.
