The Fiduciary Duties of Founders - Silicon Hills Lawyer
TL;DR Nutshell: The moment someone is added to a startup’s cap table, founders (as majority stockholders, directors, and officers) becomes fiduciaries of that stockholder. This means that, regardless of how much control founders may have over a company, corporate governance law draws a hard line on how that control can be used. Crossing that line can result […]
posted in Board of Directors , Equity , Ethics , Founders , Funding , Startup Lawyers , Venture Capital on January 13, 2016 by ancerj TL;DR Nutshell : The moment someone is added to a startup’s cap table, founders (as majority stockholders, directors, and officers) becomes fiduciaries of that stockholder. This means that, regardless of how much control founders may have over a company, corporate governance law draws a hard line on how that control can be used. Crossing that line can result in a lawsuit. This is one of those “core concepts” posts that, to lawyers and professio
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