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The co-founder did contribute and owns part of the company. Unclear how much exactly but unless he gives up his share (for free, or you pay him out) there will

by mtmail 7y ago

The co-founder did contribute and owns part of the company. Unclear how much exactly but unless he gives up his share (for free, or you pay him out) there will always be a good case to be made he owns part of future profits as well. There's no easy way to force a solution. I'd even argue without both agreeing how many shares each founders have it's 50:50. And with 50:50 one founder can completely block any decision. I've heard of companies that had to go bankrupt as one founder blocked everything. In my opinion legal treats won't work, and you should be prepared for months of uncertainty. I'd try to clarify ownership, e.g. "You prefer not to contribute, I suggest you keep 20% of shares in exchange for x USD". The lower both numbers are the better for you of course. (not a lawyer)

markotiago 7y ago
This is said to hear. Do you think emails are treated as legal documents in case of disputes? We both agreed on the shares, on the vesting and conditions. Everything is written in emails. It was just that we haven’t issued any stocks yet formally. Also, he clearly stated that he was not interested in contributing anymore. He doesn’t reply to any of the emails anymore. Not answering my calls. I’m not sure how I could have a settlement.
- mtmail 7y ago
  I think the emails are legal (enough) documents here. Start to collect those and also the attempts when and how you tried to contact him, e.g. time of (failed) phone calls. That will build a stronger case. You probably need patience though. Starting proceedings to get him out of the company without compensation or chance to review documents might be seen as hostile. Good luck. And good luck on the business itself, may it grow regardless.
  - markotiago 7y ago
    Also found an email where he says: keep the equity and good luck. Thanks for the advices, I’ll consult to a lawyer anyways but just wanted to see people’s opinion as well. Also thanks for the nice wishes.

by mtmail 7y ago

markotiago 7y ago

This is said to hear. Do you think emails are treated as legal documents in case of disputes? We both agreed on the shares, on the vesting and conditions. Everything is written in emails. It was just that we haven’t issued any stocks yet formally. Also, he clearly stated that he was not interested in contributing anymore. He doesn’t reply to any of the emails anymore. Not answering my calls. I’m not sure how I could have a settlement.

mtmail 7y ago
I think the emails are legal (enough) documents here. Start to collect those and also the attempts when and how you tried to contact him, e.g. time of (failed) phone calls. That will build a stronger case. You probably need patience though. Starting proceedings to get him out of the company without compensation or chance to review documents might be seen as hostile. Good luck. And good luck on the business itself, may it grow regardless.
- markotiago 7y ago
  Also found an email where he says: keep the equity and good luck. Thanks for the advices, I’ll consult to a lawyer anyways but just wanted to see people’s opinion as well. Also thanks for the nice wishes.