Solution: Take investment as a convertible note (loan)? Or sell shares at a fair market value, as contrasted so standard? This law seems like it just closes a loophole where a founder could take investment as personal income, which would rightly be a fee for service (salary), not actual investment; or closes a loophole where an investor makes a gift of cash to the company or for founders.

Consider YC: If you spend your $11K on your apartment rental, that's income. If you spend it on Heroku access, that's a business asset that adds value to the company.

Based on the unclear language in the petition, I don't think the only writer understands the law.