Why we picked it The India-specific piece that tells you where the split actually gets signed. It separates the founders' agreement (equity, roles, IP, vesting between you) from the shareholders' agreement (your terms with investors), and stresses the timing that trips Indian founders up: get vesting in writing before shares are issued, because you cannot bolt it on retroactively once the cap table exists. It also breaks down good-leaver vs bad-leaver treatment, which is the clause that decides what a departing cofounder actually keeps.
Founder Vesting in a Shareholders' Agreement: What Startup Founders Must Know
From Treelife by Treelife 10 min read
- Document cofounder equity and vesting at or before incorporation and before shares issue, since Indian law makes retroactive vesting nearly impossible without every founder consenting
- The 4-year vest with 1-year cliff is standard in India too, with unvested shares forfeited to the company at nominal price in a bad-leaver exit
- Negotiate clear, objective good-leaver vs bad-leaver criteria and ensure already-vested shares are retained regardless of how you exit