3 ms·
If you own 33%, you own 33%. That can't just be changed arbitrarily.
by BillinghamJ 9y ago
If you own 33%, you own 33%. That can't just be changed arbitrarily.
- beejiu 9y agoIt's not being changed arbitrarily. It's being changed by agreement. Holding 33% could make it difficult to raise money in the future I presume, which wouldn't be in anyone's interest (including the leaving founder). Every founder should be subject to a vesting schedule, of course.
- icedchai 9y agoIt can. You simply increase the denominator (number of shares issued.) This happens all the time during normal financing. Absent an agreement to the contrary, his other two partners can issue more shares to themselves, diluting him to near zero. Or, a better solution, start a new company, agree to transfer the "assets" (if any) from the old to the new, removing him from the equation entirely. Stuff like this happens all the time.