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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 "th
by 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.