StabilityAI Cofounder Says CEO Tricked Him into Selling Stake for $100

Re:StabilityAI Cofounder Says CEO Tricked Him into Selling S... by iambateman on Thursday July 13, 2023 @05:08PM (#36716007)

I was part of a group which ceded managerial control of a small business (think 100-500k/year) to a minority shareholder. This person was paid a professional salary to maintain the business, while we kept majority voting rights.

We still had majority ownership until he decided he didn’t give a ** about our ownership claims and openly did his own thing.

The problem is, no lawyer is going to take the case because the $$ is too small and we would be risking our own capital vs the company capital.

The worst part…it’s an LLC and the manager remains kind enough to send the tax statement each year, so I pay for the privilege of having a company stolen from me.

Choose your business partners carefully. :(

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Re:StabilityAI Cofounder Says CEO Tricked Him into Selling S... by codethief on Thursday July 13, 2023 @05:20PM (#36716150)

I don't understand. You have majority ownership and you can't fire the manager of your own company?

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Re:StabilityAI Cofounder Says CEO Tricked Him into Selling S... by fallingknife on Thursday July 13, 2023 @05:20PM (#36716148)

You had majority voting, right. Why not just fire him.

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Re:StabilityAI Cofounder Says CEO Tricked Him into Selling S... by icedchai on Thursday July 13, 2023 @06:58PM (#36717243)

The company is yours. Why can't you use its capital? Do you no longer have access to the bank accounts?

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Re:StabilityAI Cofounder Says CEO Tricked Him into Selling S... by bhouston on Thursday July 13, 2023 @08:30PM (#36717950)

It is confusing what when on here. If you hired him then you have a contract. Fire him. And if he doesn’t leave or return bank accounts or money get the police to charge him with trespass or thief depending. Also he has probably misappropriated money so find that and claw it back.

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Re:StabilityAI Cofounder Says CEO Tricked Him into Selling S... by iambateman on Thursday July 13, 2023 @09:44PM (#36718449)

It’s hard to explain, but it’s…complicated.

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Re:StabilityAI Cofounder Says CEO Tricked Him into Selling S... by tedk-42 on Friday July 14, 2023 @02:11AM (#36720062)

More likely you're being disingenuous about the situation

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