How much shares can I have after leaving a company?


1

As one of the cofounders of company K, I am going to leave the company recently. Per our agreement, I shall give up my intangible property associated shares but keep my cash contributed shares. I am wondering how much shares I should have after I leaving this company.

We have three cofounders, say A, B and C. I am C.

A’s Cash contribute was a1, A’s intangible property contribute was a2

B’s Cash contribute was b1, B’s intangible property contribute was b2

C’s Cash contribute was c1, C’s intangible property contribute was c2

If E=a1+b1+c1+a2+b2+c2, our initial percentages were

A%=(a1+a2)/E
B%=(b1+b2)/E
C%=(c1+c2)/E

If I leave and only keep my cash contribution shares, my (C’s) share percentage should be (c1+c2)/E or c1/(a1+b1+c1)?

Capital Account Share Percentage Cash Contribution

asked Feb 6 '17 at 08:55
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XL
6 points

1 Answer


1

It seems like your shares should be c1. Or percentage-wise, c1/E. A and B retain all their shares and you give up your c2 shared back to the company to decide what to do with them. (Probably split them among A and B somehow.)

For the record, this is the kind of thing that needs to be discussed and formalized before you do any serious work with the startup. This shouldn't have been left ambiguous in the first place. Seems like it is probably too late for you now, but for future reference, make it abundantly clear in advance next time.

answered Feb 6 '17 at 15:04
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rbwhitaker
3,445 points

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Capital Account Share Percentage Cash Contribution