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Throwaway here. I too (like Bluestrike2) was squeezed out of the company I co-founded. I know what it’s like. And I want to help. In my situation, I didn't ge

Throwaway here. I too (like Bluestrike2) was squeezed out of the company I co-founded. I know what it’s like. And I want to help. In my situation, I didn't get 3-6 months notice. There was a "difference of opinion" about the value of work I was putting into the business, and a "difference of opinion" about where the business should go strategically, and one Tuesday morning I entered a grim meeting where I was given an exit contract to consider. It was a bit of a shock - and they kindly offered me a few days to think about it, letting me go home to cry. How very kind of them... ...I realised the next day that it was to get me out of the building without incident - and that they'd already begun changing passwords (including my work email password) in the meeting, and continued the rest of the day. How humiliating… The situation you’re in sucks. For what it's worth (and I say this sincerely), I'm so fucking sorry. They're assholes. You don't deserve this. And the company never would have got to where it is today without your contribution - and how dare they use the foundation you built (your baby) to screw you. Then they have the gall to act as if you’re "not good enough". Fuck them. You’re awesome. You’ve done some cool shit. And - as great as the project is you’re working on now - I would sincerely hope that it wasn’t going to be the crowning achievement of your lifetime. I’m absolutely certain that the best for you is yet to come. I could tell you how good things are going to be in the future, and you probably wouldn't believe me. I could tell you that the lessons you learn now about control, shareholdership, business politics and more will save you later when friends and colleagues are learning the lessons themselves. But both of these are cold comfort. Realistically things are going to get harder for a while (finances, life direction, self confidence, etc), but in a few years as these things get back on track you'll know yourself better, be doing something you love more, and will be much wiser as a result of what you're doing right now. Now... Let's focus on the next few weeks. Firstly, ignore the posturing and politics in this thread about whether or not the CTO overstepped his bounds. Realistically, if he has the CEO on-side, it doesn’t matter. Feel free to get up on your high horse about this if you need to, or if it makes you feel better. Or you could wear funny hats. Or do something else equally useless. When you’re ready to do something productive, let’s keep going.

throawaycofnder 13y ago
What I'm going to tell you next is controversial. Take it or leave it. I'm sure other people will tell you it's wrong/immoral/stupid/a bad idea/whatever... Good for them. I want you to start saving everything. Save emails. Save contacts and contRacts. Save code libraries. Save workplace procedures and systems. Save lists of your clients, suppliers and resellers. Save strategy documents. Save analytics and marketing plans. Save Facebook remarketing lists. Then put all of this stuff in a drawer, and forget about it for the next few years. One day down the track, you're going to wish you had access to some of this stuff. "What was that supplier/investor/advisor's phone number?", "How did we build our user base initially?", "How successful was X technique?", "What was the codebase we used?", "Who was that great client who gave us helpful feedback?" etc. Keep it offsite, and do it in a way that won't set off alarm bells (slowly, reasonably, etc). Be very very careful. This is probably their #1 fear, and they might be keeping tabs on access logs for certain sensitive documents. No doubt a lot of this data will be stored on your computer (laptop?) already. Back it up, and keep a backup offsite so that it's protected if you get a rude shock and are forced out at a moments notice. The other way to access it is in the normal course of work over the next few months. If you have a legitimate reason to check X while you're doing Y, then check X on your local machine and save a backup. Over 3-6 months, you'll probably end up touching every piece of the business. This is not about power. It's not about revenge. And it's not copyright or IP rights. (Don't be stupid and try to use it to "get them back", or to beat them at their own game, or ruin them, or whatever. You'll lose.) This is a reference for you. A time capsule you can look back on for lessons, advice and strategy when you're building the foundation of your new life - without having to go back to square one.
- throawaycofnder 13y ago
  Now that we have that out of the way - let's talk lawyers. Realistically, if you don't have a controlling stake, they're next-to-nothing you can do to stop "them" screwing you. All a lawyer is going to be able to do is tell you "if you do X, or let them do Y, you'll be far worse off". As Bluestrike2 says, you might wind up winning the case, but bankrupting yourself in the process. Litigators are the only profession that provides no economic benefit to society. Other professions create things, or improve things, or build on things. Litigators divide a pie into 3 parts, and keep a slice. So the chances of walking out ahead are pretty remote. Plus it sounds like you don't have a huge amount of cash to spend on lawyers anyway. So keep your head screwed on. Sure, get advice so that you know where you stand. But this "lawyer up", "fight for your rights" bullshit is a road to ruin spouted by idiots. Find a lawyer who has expertise working for people in your CTO/CEO's position. I think they're going to have seen more cases, and learned more about what works and what doesn't, than someone who has expertise protecting "the little guy" (minority shareholders, etc). I don't know what it's like where you are, but where I'm from lawyers are required to provide a schedule of fees and a costs estimate upon request. It's nice to get an idea about the fees in advance. Before you meet with them, send them the contract and have a brief chat about what you want from them before you sit down. The day before you meet with them, call them just to check they've read the contract. Don't let them get away with flying by the seat of their pants in your consultation. (You'd be surprised at how many lawyers do this.) The 3 questions you want answered are: 1. What your legal obligations are, under your contract and any relevant legislation or case law, and how do you ensure you don't fuck up and accidentally screw yourself out of your equity/shareholding/vesting/whatever. 2. What legal protections you have under your contract and any relevant legislation or case law. (i.e. How might the company push you out in unpleasant ways, and what you can do to prevent this from happening.) 3. How would they recommend you get out as quickly and as profitably as possible. Realistically, your lawyer is going to tell you "Here's a list of stupid and pretty obvious things you shouldn't do. There's not too much you can do to protect yourself, and there are plenty of things they can do to screw you totally." For example, the CEO might be in a position where they could sell all the assets of the company to a new company, and leave you with an interest in an empty shell. Or there might be an "out" in the contract that lets them essentially kick you out for next-to-nothing. Or the CEO could "loan" the company money at high interest rates, bankrupting it, and then repossess the assets. And there might be sweet FA you can do to protect yourself from these scenarios.

throawaycofnder 13y ago

What I'm going to tell you next is controversial. Take it or leave it. I'm sure other people will tell you it's wrong/immoral/stupid/a bad idea/whatever... Good for them. I want you to start saving everything. Save emails. Save contacts and contRacts. Save code libraries. Save workplace procedures and systems. Save lists of your clients, suppliers and resellers. Save strategy documents. Save analytics and marketing plans. Save Facebook remarketing lists. Then put all of this stuff in a drawer, and forget about it for the next few years. One day down the track, you're going to wish you had access to some of this stuff. "What was that supplier/investor/advisor's phone number?", "How did we build our user base initially?", "How successful was X technique?", "What was the codebase we used?", "Who was that great client who gave us helpful feedback?" etc. Keep it offsite, and do it in a way that won't set off alarm bells (slowly, reasonably, etc). Be very very careful. This is probably their #1 fear, and they might be keeping tabs on access logs for certain sensitive documents. No doubt a lot of this data will be stored on your computer (laptop?) already. Back it up, and keep a backup offsite so that it's protected if you get a rude shock and are forced out at a moments notice. The other way to access it is in the normal course of work over the next few months. If you have a legitimate reason to check X while you're doing Y, then check X on your local machine and save a backup. Over 3-6 months, you'll probably end up touching every piece of the business. This is not about power. It's not about revenge. And it's not copyright or IP rights. (Don't be stupid and try to use it to "get them back", or to beat them at their own game, or ruin them, or whatever. You'll lose.) This is a reference for you. A time capsule you can look back on for lessons, advice and strategy when you're building the foundation of your new life - without having to go back to square one.

throawaycofnder 13y ago
Now that we have that out of the way - let's talk lawyers. Realistically, if you don't have a controlling stake, they're next-to-nothing you can do to stop "them" screwing you. All a lawyer is going to be able to do is tell you "if you do X, or let them do Y, you'll be far worse off". As Bluestrike2 says, you might wind up winning the case, but bankrupting yourself in the process. Litigators are the only profession that provides no economic benefit to society. Other professions create things, or improve things, or build on things. Litigators divide a pie into 3 parts, and keep a slice. So the chances of walking out ahead are pretty remote. Plus it sounds like you don't have a huge amount of cash to spend on lawyers anyway. So keep your head screwed on. Sure, get advice so that you know where you stand. But this "lawyer up", "fight for your rights" bullshit is a road to ruin spouted by idiots. Find a lawyer who has expertise working for people in your CTO/CEO's position. I think they're going to have seen more cases, and learned more about what works and what doesn't, than someone who has expertise protecting "the little guy" (minority shareholders, etc). I don't know what it's like where you are, but where I'm from lawyers are required to provide a schedule of fees and a costs estimate upon request. It's nice to get an idea about the fees in advance. Before you meet with them, send them the contract and have a brief chat about what you want from them before you sit down. The day before you meet with them, call them just to check they've read the contract. Don't let them get away with flying by the seat of their pants in your consultation. (You'd be surprised at how many lawyers do this.) The 3 questions you want answered are: 1. What your legal obligations are, under your contract and any relevant legislation or case law, and how do you ensure you don't fuck up and accidentally screw yourself out of your equity/shareholding/vesting/whatever. 2. What legal protections you have under your contract and any relevant legislation or case law. (i.e. How might the company push you out in unpleasant ways, and what you can do to prevent this from happening.) 3. How would they recommend you get out as quickly and as profitably as possible. Realistically, your lawyer is going to tell you "Here's a list of stupid and pretty obvious things you shouldn't do. There's not too much you can do to protect yourself, and there are plenty of things they can do to screw you totally." For example, the CEO might be in a position where they could sell all the assets of the company to a new company, and leave you with an interest in an empty shell. Or there might be an "out" in the contract that lets them essentially kick you out for next-to-nothing. Or the CEO could "loan" the company money at high interest rates, bankrupting it, and then repossess the assets. And there might be sweet FA you can do to protect yourself from these scenarios.