Startup Operations

Startup Cofounder Issue

Kunle David Cofounder and ceo

Last updated on September 11th, 2017

Hello, I started a startup company a year ago now with a couple of friends. We had the same equal shares because i was the one with the idea but brought them on board cause i didn't have the finances to incorporate and do market research etc.

Few months later we all had to contribute to pay for the development of the software platform we were going to use for the business. None of them could or refused to come up with their part of the contribution. But I on the other hand cause its my idea, have being working to raise funds for the enterprise.

A year down the line, I am now able to get investment for the building of the software app. I have now spoken with another partner who is more interested, but wants us to start another company entirely, but doing the same thing. But I on the other hand want us to continue with the initial company, but dont know how to get the other directors off the board as they seem no longer interested, apparently cause of their laid back attitude.

So my question now is how do i go about getting them off the board for good?

Scott McGregor Advisor, co-founder, consultant and part time executive to Tech Start-ups. Based in Silicon Valley.

September 13th, 2017

I am not sure why you want to keep the initial company with the baggage it has, when you could start fresh with the new investor. But assuming that you have a good reason to do so, I would suggest that you offer to buy out the shares of the other directors. If they give you fair terms they get some cash out and you get them out. If they don't accept you can leave the company, start the new one, and they own a share of a company that generates nothing. Surrender your shares and officer position and make it their problem to shut down the old company and take it through bankruptcy. If they are rational, taking the payout will seem the better course of action.