SHOOT THE FOUNDER !

A growing phenomenon that I have noticed in recent years is for growing companies to ditch their founder. This will happen when the founder needs investment from outside his immediate circle and loses control of the majority shareholder. What then happens is that the investors and their director representatives differ from the founder as to the direction of travel of the company and a bad situation becomes worse. Often the fault is that of the founder because he or she does not like being a smaller fish in a larger pond but it is also the case that the new investors and directors think they know best and they don’t ! if you are a founder make sure that your lawyers give you proper protection in the shaeholders agreement.