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I’m not the parent, but it’s really hard to pull a future-proof contract about stock grants. The most frequent shenanigan is probably to dillute the employee sh
by eastbound 3y ago
I’m not the parent, but it’s really hard to pull a future-proof contract about stock grants. The most frequent shenanigan is probably to dillute the employee shares. Even if you are the CEO, investors can get you fired-in-bad-terms just to cancel out your shares.
- antihipocrat 3y agoIf the founder retains a controlling interest in the business (say 51% stock ownership) are they safe from these shenanigans?
- namaria 3y agoThat can't be evaluated without full knowledge of the contract and a lot of knowledge of the personalities involved. There is no 'safety' in dealing with other people, you need to know whom to trust.
- eastbound 3y agoSome contracts require 66% or 75% of votes to be able to change the repartition of shares or extend capital, or even any shareholder can veto. Some contracts don’t have conditions. Philosophically, even if not written in the contract, someone could convince you to dilute at the last minute. The best interest of a buyer is to put the target in close bankruptcy before buying it. Anything is possible in peer-to-peer negotiations, and legal framework can only go so far.