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Well, there's two sides to every story. He fronted you cash on a project with some risk of it going nowhere, and he did contribute time as well. He's got some l
by lionhearted 16y ago
Well, there's two sides to every story. He fronted you cash on a project with some risk of it going nowhere, and he did contribute time as well. He's got some legitimate ownership claims.
Now, you feel like he's not worth what he's getting, and this happens. Actually, one of the most common reasons partnerships break down is because of perception of the other guy's work rate.
I'd look to negotiate a buyout for him. He does own some of the company. On your side of the story, it looks horribly unjust. But you know, there's his side of the story where he spends time thinking about the company, consulting with you, risks his money, etc. He's probably feeling like you're trying to screw him and that you're being terribly unfair as well.
Try to negotiate a buyout that includes him relinquishing all ownership of the company. He did put time and money into this and backed you with no guarantee of return - he's entitled to something. The court thing is a non-issue at this stage unless he's really vindictive, but it'll be like an ax hanging over your head forever if your project is successful, or you want to hire, or raise money, or anything else. Try to buy him out and go on your own way. When you negotiate, don't tell him how unfair it is, etc, etc. This just ticks people off without accomplishing anything. Just focus on how you don't think this is a good partnership any more, and you're sorry it didn't work out, and after thinking about it you'd like to buy him out, and then make a low offer and come up a bit.
- iainr 16y agoSounds like you have read "How to win friends and influence people". Going in negative isn't going to get you very far
- unexpected 16y agoI agree with this - just remember that under no circumstances should you give away equity of the company. Tell him that if he wants to own 50%, he has to pay 50% of the costs as well. Tell him you're going to rapidly expand and ask him to commit $50-$100k (that you could easily seek from outside investors) or he's going to risk being diluted. I bet you he will change his tune.
- hugh3 16y agoAlso, to be realistic having an antagonistic relationship between the two owners of the company is going to be poison. The other guy should understand this; if he owns half the company then hack_rohan is probably not going to be terribly keen on continuing to work on this company. But certainly the other founder is entitled to a lot more than a thousand dollars here (though there's some vagueness in the description). A good negotiating position might be to tell him he can have half the company or the $2000, and plan to get bid up on the $2000 side somewhat.
- unexpected 16y agoI'm not even sure how they would go about creating ownership in the company. An American can't be an individual investor in an Indian company. An Indian without a working visa can't have a startup in a US company. Ownership issues are convoluted, and would take way more money on lawyer fees to figure out. Everyone keeps bringing up US laws with regards to ownership, but remember that this is an INDIAN company, where different rules apply.
- andreshb 16y agoYou don't need a working visa, a visa, or to even set foot in the U.S. to be shareholder/owner of a U.S. company.
- Tyrannosaurs 16y agoThat's true but Indian law is an absolute minefield, particularly for those not familiar with it. I have a former colleague who is still embroiled in a case that's been going on for over a decade. Jarndyce and Jarndyce anyone? It would take a brave soul indeed to get involved in that from abroad with relatively little at stake.