Can You Legally Remove Equity From A Cofounder You Want to Fire?
Oh it pains me to see the same mistakes made over and over again.
Your cofounders have a certain percentage ownership in your company. And they have this percentage without the equity having to vest.
You can’t just take the equity back saying, “We don’t like you.” It doesn’t work that way.
The good news is there are ways out of this for you. Do what you should have done when you started your company:
Get a good startup attorney. Someone that knows what they are doing. Your attorney will help you understand what you can and cannot do.
But there’s more you need to do beyond dealing with the equity. There are at least eleven conventional and unconventional things you need to protect yourself from when a founder leaves.
For more, read: What Are The Eleven Steps You Can Take When A Co Founder Quits?
Need a CEO Coach? Click here
View original answer on Quora.