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In practice, everything a board does is unanimous. If you respond to you VC board members saying "he is too expensive" with "let's vote on it", the company has
by frisco 16y ago
In practice, everything a board does is unanimous. If you respond to you VC board members saying "he is too expensive" with "let's vote on it", the company has WAY deeper problems.
- jacquesm 16y agoThe bigger problem in this case was that there was consensus about the budget before it was made clear what the goal to be achieved by spending it was. Being in business means being flexible and having a bunch of beancounters on the board that are scared to be diluted is not going to help at all. In such a case stating your case as clearly as you can, possibly in a follow up meeting (because he clearly was not well prepared for this one) would have been much better, also, and that's another critical mistake here, before you approach an outsider you first agree internally that you will do so, and what the budget for that particular outsider is. That could have saved some friction here. A ship has only one captain, if the VCs are on the board they are represented as guardians, but not in a decision making capacity, only an advisory role. Board decision are not nearly always unanimous, and it could very well be that a decision like this is determined during a general shareholders meeting if the board can not find a resolution. 1 share, 1 vote.