What can a co-founder do to have a say in the company when everything goes in favour of the main founder?


2

A two signatory account
will be created but the
main founder can sign
without the co-founder
signature; on the other side, the co-
founder can not sign
without the main
founder's signature.

Everything goes in the
way of the main
founder. What if there is
a disagreement? That
means the main founder
can withdraw all the
cash without the consent
of the co-founder.

What
can the co-founder do
to avoid this in the
future?

What if there is
a disagreement? That
means the main founder
can withdraw all the
cash without the consent
of the co-founder. What
can the co-founder do
to avoid this in the
future?

Co-Founder Founders Agreement Bank Account

asked Jul 6 '11 at 02:58
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Ola
11 points
  • Sorry to be pedantic, but you can't expect quality answers if your question contains so many typos. Tried to fix the more obvious. – Filippo Diotalevi 8 years ago

3 Answers


2

LEGAL PROTECTION. Even minority partners have rights. FOr example:

That means the main founder can withdraw all the cash without the consent of the co-founder.

The word for that is theft. A foutner in some countries may find himself thrown out of the company at book value (and prosecuted by law). Criminal charges.

Why? Because even if the co founder only owns 1% of the shares, he has a right to 1% of the assets. Stealing them and running is illegal.

So, there is quite a lot of legal protection. You dont enter partnerships in a vacuum.

answered Oct 5 '11 at 00:31
Blank
Net Tecture
11 points

1

Who has control of the bank account is not particularly relevant. Even a sole founder with full access to the company bank account doesn't have the right to take the money and cash it for himself.

Why? Remember that the company is a separate (moral) person. He'd be stealing from that person. Yes, it's weird because he is the company's only founder, but it still must be treated as a separate person.

What really matters is who controls the company itself. That usually depends on your corporate structure, who has how many shares, whether this is some kind of board of directors and so on.

answered Oct 5 '11 at 01:54
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Alain Raynaud
10,927 points

1

I'm sorry to say this but, from your post, i would say you are not a co-founder nor treated as one. If the founder can do everything without your OK then leave, you are doing nothing there, sooner or later he will takeover. Unless you can balance the partnership, as you describe it, it's pure non-sense.

answered Aug 5 '11 at 22:30
Blank
Rui
364 points

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Co-Founder Founders Agreement Bank Account