Equity and vesting
Split and vesting schedule.
All policies & documentation services
Policies & Documentation
Founders' and Shareholders' Agreements
FinAura helps founders and investors put their commercial understanding on paper: equity split and vesting, roles and time commitment, how decisions are made, investor rights, share transfers, exits and what happens if a founder leaves. We draft the commercial, tax and cap-table terms and prepare the document for review and finalisation by your lawyer.
- Written for your company, not templates
- Drafting support, ready for legal review
- Bangalore and across India
What is covered
What Founders' and Shareholders' Agreements Covers
The founders' understanding, before it is tested.
Roles
Responsibilities and commitment.
Decisions
Reserved matters and votes.
Transfers
Pre-emption, tag and drag.
Exits
Good and bad leaver terms.
Cap table
Kept consistent with the deal.
How the month runs
How It Works
Discuss, draft, review, sign.
Step 1
Discuss
- Founders' understanding
- Investor terms
- Open questions
Step 2
Draft
- Terms
- Vesting
- Cap table
Step 3
Review
- Founders
- Lawyer
- Articles aligned
Step 4
Sign
- Stamping
- Execution
- Filings
Your part
What We Need From You
- 01Founders' understanding of the split and roles
- 02Term sheet, if there is an investor
- 03Current cap table
- 04Your lawyer's contact
Our part
What You Get
- The deal written down clearly
- Vesting and leaver terms agreed
- A cap table that matches
- A document ready for legal review
A common question
Why do founders need an agreement early?
Because the hardest conversations, about who owns what if someone leaves or stops contributing, are easiest before there is anything to argue over.
An agreement with vesting and leaver terms protects every founder and makes the company easier to invest in.
See ESOP scheme documentsDocumentLegal review
TermsEquity and exits
UnderstandingBetween founders
Who it is for
Who It Is For
Co-founders
Before the first round.
Startups raising money
Shareholders' agreement.
Family businesses
Bringing in partners.
Companies with a founder leaving
Terms to apply.
The rules, in plain English
What the Law Says
Indian Stamp Act and state stamp laws
Stamping of agreements
Agreements are stamped as the stamp law of the state where they are executed requires; unstamped agreements can face difficulty as evidence.
Official source: indiacode.nic.inCompanies Act, 2013
Sections 5 and 58
A private company's articles can restrict share transfers; terms agreed between shareholders are best reflected in the articles to bind the company.
Official source: mca.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Founders' and Shareholders' Agreements: Questions, Answered
What is founder vesting?
An arrangement where founders earn their shares over time, so a founder who leaves early keeps only part of their equity.
Is a founders' agreement legally binding?
A properly executed agreement is a contract; key terms should also be reflected in the company's articles. Your lawyer should finalise it.
What is the difference between a founders' and a shareholders' agreement?
A founders' agreement is between the founders; a shareholders' agreement usually comes with investment and covers investor rights too.
Do you update the articles?
Yes, through our ROC team, so the articles match the agreement.
Often Taken Together
All 11 Policies & Documentation services01Policies & DocumentationESOP Policy and Scheme DocumentsA scheme, grant letters and record-keeping that match the Companies Act requirements and the tax rules.02Policies & DocumentationAgreement Drafting: Vendor, Customer and EmploymentPlain, protective wording for the agreements your business signs most often.03Accounting & FinanceVirtual CFOA Chartered Accountant reading your numbers, planning cash and guiding decisions.04Tax & ComplianceROC & Corporate ComplianceAnnual ROC filings, director KYC, event-based filings and LLP to company conversion.