Business & contractsIndia

Prepare founder exit and handover terms

Get your facts together with a trusted grown-up.

Create an exit checklist covering roles, equity, money, IP, commitments, assets and the separate approvals needed.

DisputePeoplePrep worksheet

Who it goes to: Departing founder, continuing founders, authorised company decision-makers and advisers

Where it applies: India; entity, state, tax and transaction-specific requirements need checking

Prepare this
01 · What is this?

This worksheet gathers the terms to discuss when a founder plans to leave.

02 · When is it useful?

Use it before agreeing a buyout, resignation, release or handover.

03 · Start here

List the person’s separate roles and collect the documents that govern each role.

Gather your pieces

  1. Separate founder, shareholder, director, employee, consultant and guarantor roles.
  2. Collect governing agreements, share records, loans, outstanding expenses and third-party commitments.
  3. Do not promise a release, share price, tax result or removal of authority before review.

Your prep sheet

Replace each [bracketed label] with your own verified details. Open the editor to make it yours, then read it through before sending.

FOUNDER EXIT — TERMS PREPARATION
PROPOSALS FOR REVIEW; NOT AN EXIT SETTLEMENT

Date: [Document date]
Business: [Business / company details]
Departing person and current roles: [Departing Person]
Continuing participants: [Continuing Participants]

1. REASONS AND PROPOSED TIMING
Neutral factual context, intended transition date and any urgent continuity issue:
[Context]

2. ROLE-BY-ROLE ACTIONS
For each role: current status / governing document / proposed change / approval or filing / responsible adviser:
[Role Actions]
Keep director resignation, employment termination and share ownership separate.

3. OWNERSHIP AND PRICE QUESTIONS
Verified holdings, existing vesting terms, proposed retention or transfer, proposed valuation method, funding source and unresolved tax issues:
[Ownership Questions]
No shares are transferred, cancelled, forfeited or repurchased by this sheet.

4. MONEY AND LIABILITIES
Salary, expenses, founder loans, advances, customer commitments, guarantees and disputed amounts; attach a reconciliation:
[Money And Liabilities]
Identify which third parties would need to consent to any release or replacement.

5. IP, CONFIDENTIALITY AND ONGOING RIGHTS
Ownership evidence, agreed permitted uses, assignments or licences needing review, and surviving obligations:
[Ip And Rights]

6. HANDOVER
Projects, customers, suppliers, staff responsibilities, physical assets, records and authorised access changes; owner and target date for each:
[Handover Plan]
Transfer access through approved account processes. Do not record passwords, recovery codes or private keys.

7. PROPOSED FINAL DOCUMENTS
Exit agreement, role-specific notices, corporate approvals, transfer instruments, payment schedule, receipts and required filings:
[Documents Needed]

OPEN POINTS AND NEXT MEETING
[Open Points]

Prepared by: [Prepared by]
Do not describe the exit as complete until the reviewed actions and their conditions have actually been satisfied.

Your next moves

  1. Obtain legal, company-secretarial and tax review of each proposed exit action.
  2. Use the required documents and approvals for each role; retain actual filing and transaction evidence.
  3. Complete a witnessed or otherwise agreed handover record and preserve required records.

Real-world check

No resignation, transfer, buyback, release, valuation or statutory filing is effected by this worksheet. Leaving a role does not automatically end guarantees, ownership or existing liabilities.

Sources & official links