They have their own opinions expressed by business partners.
Imagine it. Jane and John, who met at a startup incubator, founded a company with a company. But as they increased, Jane realized that she and her life were not associated with many things, including what the future of the company should be. Neither John’s goals nor his behavior reflect the company’s mission, so Jane removes John from the business.
Reasons for co -founder’s departure
There are many reasons why a co -founder wants to separate from another co -founder.
1. The lack of dedication
A startup that wants to measure a large exit is usually required for founders who devote long hours to a little salary (at least in the beginning). While some founders like Jane are willing to do so, some are like, not. Jane was willing to put more hours to fulfill her responsibilities. On the other hand, John arrived late and went quickly, and showed that he was not dedicated to his character – or to the company.
2. It’s hard to work
It is difficult to work with some founders. They are not cooperative, they are locked on the input of others or they make their employees fine or micro management. While in the office, John’s attitude was one of the superiority. He felt that some work was under it and others should “heavy lifting”. He criticized his employees at every opportunity, reduced the morale and eventually expelled a very dedicated, key employee from the company.
3. Lack of alignment with vision
Although a dreamed team of fellow founders can be committed and as a colleague they may be great, they may have different views about the future of their company. For example, they cannot agree with an axis, other founders believe that it is important. Jane wanted to focus on R&D to ensure the ongoing innovation, but John was focused on expanding the company. In addition to its behavior, this lack of alignment caused so much tension that Jane started the process of eliminating her co -founder.
Related: So your co -founder is threatening to leave until you give them any further equity. What should you do?
Legal reservations
In addition to the errors that can be made during the expiry process, when the founders have numerous legal reservations to keep attention when separate.
1. To comply with the job law
Founders are almost always employed by law. When eliminating an employee, keeping some paperwork and notes, and meeting the deadline for the final salary payment, keep in mind the legal status of the expiry – and meet it. When the tension between Jane and John began, Jane made documents for each example so that she had a related backup at the time of the end of life.
2. Has your relationship beaten buttons?
Make sure you are not giving advantage of a co -founder. Breaking promises in its founding documents regarding IP assignments or privacy responsibilities or not saving the company legally means that they now need a valuable IP.
3. Do you have a legal right?
It is important to ensure that a co -founder has the legal right to abolish another co -founder. If they do not do so, they should take necessary steps to secure these rights. It may not be as easy as telling them that they have been fired. For example, the company’s side rules can allow a co -founder to end only if the board has voted to do so. The founders need to ensure that they can get the support of the board.
When John’s performance began to decline, Jane consulted with the company’s board to ensure that the board was informed from the beginning.
More legal reservations: What is not to be done
Although such issues are being considered for not going into legal issues, it is also considered for what to do.
1. Don’t think about the separation agreement
The legally binding separation agreement can obtain you claims, possibly neglect terms and other other benefits to the company, including contracts for non -trial. Investors would like to see it if they are diligently possible. It costs some money to get it.
As soon as John’s performance began to face and other employees began to complain about his behavior, Jane advised a job lawyer to prepare the necessary paperwork for a separatist agreement, which could be completed without worrying about a possible case.
2. Forget to finish access to the system
Sure, after accessing the company’s information to a deposed partner, ensure that they cannot access the company’s system. Angry employees with company data access can cause major problems.
Once John was officially “out”, all access to company information was disconnected. Jane knew that, if given the opportunity, John would have tried to access some figures after leaving the company.
3. Press Employees, Investors and other stakeholders
Sometimes in an attempt to explain the departure of the evacuated founder, the founders will resort to negatively about them. This opens up the responsibility of defamation to the company. It can also be badly reflected on the company and the founding terms. Finally, this can lead to more enmity with the founder company.
Despite their differences, Jane maintained a reasonable level of professionalism. However, this process, for that, his team and eventually the company, John’s ouster and the reasons behind it remained in the Executive Leadership Team.
Related: 4 sensible strategies to maintain a healthy co -founder relationship
The utility of scratching the law
All these suggestions depend on the rest of the founders who legally meet the needs of the founder. When they do not do so, there is utility.
1. Fine and legal claims
First of all, fines can be imposed, not complying with employment laws, and legal claims are given to the deposed founder. They can add. For example, in California, if all wages are not paid on the last day of employment, the deposed founder deserves a fine of each day’s wages unless they pay completely (up to 30 days).
Jane’s diligence in consulting a start -up attorney prepared her for separation. In addition to the separation agreement, Jane presented John with his last salary at the end of the meeting.
2. After the end of the end
If you do not button your relationship with the founder before it is finished, you will be stuck in the conversation after the post -termination for your need. At this point, you are unlikely to take much advantage of.
3. No contract of separation
If you fail to get a separation contract, investors can diligently emphasize to get one later. This is often difficult. Also, you can subjugate the company to claims that are issued if the money is initially offered as separate. Note that if one is presented with a positive message and privileges, the founder can quickly sign the separation agreement. The absence of up -front offer may result in legalization, and demands may increase.
The bottom line
Although there are a number of factors that help the company’s founder eliminate, it prepares the company for proper preparations to avoid legal problems.