Legal support when a founder exits your startup

It is commonly useful when a founder is leaving before product launch, during pilot stage, ahead of a raise, or around the time early hires are joining. At those points, unanswered questions about shares, IP ownership, confidentiality and decision-making can become more visible to investors and the remaining team. This service is suited to startups that want the departure documented properly rather than handled informally over email or chat messages. It is particularly helpful where the departing founder helped build the product, holds shares, or has access to sensitive information.

The main issues are usually ownership and control. That can include whether the founder keeps or transfers shares, whether any vesting or buy-back terms apply, whether they need to resign as a director, and whether all IP created for the startup has been assigned to the company. Confidential information, ongoing restrictions, and how the exit is described to investors or staff can also matter. If these points are left vague, the startup can run into problems later during due diligence, fundraising, or a disagreement between founders.

The service can include a founder exit deed or agreement, documents dealing with share transfer or cancellation, and IP assignment or confidentiality documents if the situation calls for them. We also look at how the documents fit together so the exit position is internally consistent. For example, if the founder is both a shareholder and a director, the paperwork may need to address more than one role. The exact mix depends on your startup's structure and the terms already in place between the founders, but the aim is broader offboarding support rather than a single standalone document.

That usually means the exit needs to deal with more than just a resignation. A shareholder position may raise questions about transfer rights, buy-back mechanics, vesting, valuation approach or existing shareholder restrictions. A director role may also need formal resignation steps and updates to company records. We can help prepare the legal documents that reflect those changes and explain how they fit together. If the matter turns into a live dispute or requires ongoing negotiation beyond the stated work, that would usually sit outside this fixed-fee service and be scoped separately.

Yes, although the work may involve more judgement if the founders never signed a detailed agreement at the start. In that situation, the legal documents often need to deal carefully with shares, contributions already made, ownership of code or other IP, and confidentiality going forward. Informal arrangements can be especially risky where one founder built part of the product or introduced key customers or investors. We can help put the exit terms into writing based on your instructions and the documents available, but the service is not a substitute for ongoing representation if the facts are contested.

Submit an enquiry on this page or click 'Get started'. One of our legal consultants will review it within 1 business day and get in touch to understand what you need.

Your consultant will then email you a fixed-fee quote setting out the cost, scope and timing. If you're happy with it, you can accept the quote and sign our engagement letter online.

Once you've accepted, one of our Australian-qualified lawyers will work with you to complete your project. They'll contact you by email or phone if they need anything.

Sprintlaw works on fixed-fee pricing wherever possible, so you can review the scope and cost before you decide whether to proceed. For the Founder Offboarding Pack service, pricing starts from $1,200.00.

After you enquire, a legal consultant will confirm what is included, the expected timing and whether any extra work is needed before you engage us.

We work online, so we can help wherever you are in New Zealand. Our team works remotely, mainly from Australia.

Your work is done by our Australian-qualified lawyers, who hold Australian practising certificates and specialise in business law. None of them are New Zealand lawyers or hold a New Zealand practising certificate.

Sprintlaw NZ Limited is a legal consultancy, not a law firm, and is not regulated by the New Zealand Law Society. We don't act in court or tribunal matters, conveyancing (including leases and business sales) or other reserved areas of work. Communications with Sprintlaw are unlikely to be protected by legal professional privilege. We still keep everything confidential under our engagement letter.