Re:We picked the wrong lawyers for our first startup
by joshu on Thursday May 29, 2014 @04:12PM
(#7818344)
If you are the partner who is bringing some substantial asset to the partnership (perhaps code or whatever) the ownership from this asset should be un-vesting.
If it is a pre-existing product or business this can be substantial.
Re:We picked the wrong lawyers for our first startup
by jarrett on Thursday May 29, 2014 @02:04PM
(#7817649)
You've convinced me. This seems true for all companies.
Re:We picked the wrong lawyers for our first startup
by ottocoder on Thursday May 29, 2014 @06:12PM
(#7818938)
I have never heard the "club" vs "company" comparison before, but that seems like a great way to describe the mindset of founders.
Is it possible to establish a company that is run like a club and are there any examples? Or am I extending the analogy too far? Perhaps some research organizations are set up along those lines?
One way or another, a grave and unresolvable dispute between founders will leave you with some performing partners and some nonperforming partners. It's hard to imagine operating a company with a nonperforming partner on the books; not only do they have dramatically less of a stake in the company than everyone else, but they also have a gun to the heads of the rest of the company.
It's worth adding that wanting to be on the books as a full partner/director/founder of a company that wants you ousted is, for a cofounder operating in good faith, irrational.
When you start a company with other people, you have to decide first whether you're starting a company or a club. A club can disintegrate as a result of conflict and that's not a big deal. But if you're building a company, then the welfare of the company needs to be among the most important factors in resolving disputes.