This blog post by Jay Parkhill examines the issues which arise when the founding members of a business want to add another person whom they wish to treat as a founder (right down to an equity share) at a later date. The problems with this primarily arise because of appreciation in business value. This appreciation constrains the choices the founding team has to distribute an equity (or equity-like) stake to the co-founder candidate, and creates securities law and tax concerns, and can further create issues on the sale of the business.
- Summary by FizzLaw Team
Read the Article at:
The Case of the Late Co-Founder