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It all depends on the exact details of any contracts with the VC such as your shareholder agreement. Is there a drag-along right? What board representation does
by davros 16y ago
It all depends on the exact details of any contracts with the VC such as your shareholder agreement. Is there a drag-along right? What board representation does the VC have? Do you have the ability to call a shareholder meeting and get them voted off the board?
You need to work through with your lawyer and ask him or her in great detail what options you have in terms of forcing the VC to cooperate. Can you wind up the company without his/her agreement? What non-compete clauses apply? Can they be worked around?
Do you have the right to make a share issue in a way that would dilute the VC below a control threshold (while satisfying all legal and fiduciary obligations)?
Others in this thread have suggested you 'out' the VC - do not do this without legal advice, and I would recommend you not do it at all. You need to be 100% in compliance with the law of libel etc. Even if a staff member leaks information without your consent that places you in a weaker position not a stronger position.
If you have strong options, then pursue them. This may lead to the VC showing willingness to compromise. In which case, do genuinely consider compromise.
- davidu 16y agoOkay... but why is this a comment to my comment? I don't see any connection to my post.