3 ms·
What do you do about disputes in the case of 50-50 ownership? In particular, what do you do if one founder wants to fire the other founder? I've heard of a so-
by bravura 16y ago
What do you do about disputes in the case of 50-50 ownership? In particular, what do you do if one founder wants to fire the other founder?
I've heard of a so-called "shotgun clause". It's analogous to the problem of fairly cutting a cake. One person cuts, the other person gets to pick a piece. IIRC, in the shotgun clause, one founder can demand that the other founder leave, and names a price for the company. If the other founder wants to stay, he can buy out the first founder for the named price. This sounds reasonable, except that founders might not actually have the money to buy out the other founder.