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The departure of a founding partner: what happens and how to avoid problems

LetsLaw / Commercial Law  / The departure of a founding partner: what happens and how to avoid problems
The departure of a founding partner: how to avoid problems

The departure of a founding partner: what happens and how to avoid problems

Founding a company with other people is usually an intense experience, full of excitement and shared effort. But as the project moves forward, not everyone always follows the same path. It’s normal for priorities to shift over time, for differences to arise, or for new opportunities to appear. When that happens, one of the most delicate situations is the departure of a founding partner. Although it’s relatively common, if not properly anticipated from the start, it can lead to internal tension, blocked decisions, or even legal conflicts that affect the direction of the company.

When a founding partner leaves, they don’t just stop working at the company. In many cases, they still own part of the business, which gives them the right to vote, make decisions, and receive profits. This can complicate things if they are no longer involved with the team. And if no clear agreements were signed at the beginning, that partner could use company ideas or information to launch a similar project, which could cause serious issues.

One of the most frequent sources of conflict is the division of equity. It’s common for founders to initially split ownership equally without thinking about what happens if someone steps away from the project. If there’s no agreement stating that ownership is earned overtime or based on commitment, a person who barely contributed to the development might end up with a significant share of the business.

It’s also essential to define from the beginning who owns what is created within the company. This includes things like software, branding, customer databases, or business presentations. If there is no signed document stating that these belong to the company and not to individual founders, future disputes may arise. Also, without confidentiality or non-compete clauses, a departing partner could use sensitive information to directly compete with the company.

That’s why prevention is key. A very useful tool is the shareholders’ agreement. This document, signed by all founders, sets clear rules about what happens if someone leaves, how major decisions are made, how ownership is managed, and how company information is protected. Although it may seem unnecessary at the start, having this agreement avoids many problems down the road and shows that the team is acting professionally.

It is also a good idea for each founder to sign a separate agreement stating that everything they create for the project belongs to the company. This can also include clauses that prevent them from competing directly or sharing sensitive information after they leave. This is not about distrust but about protecting the work that everyone has built together.

In summary, the departure of a founding partner does not have to become a serious problem. As long as there is clear planning, open communication, and well-defined rules, it is possible to manage the situation in a professional way, while protecting both the team relationships and the future of the business. Thinking about these situations from the beginning is not a sign of pessimism. Quite the opposite, it shows true commitment to the company and to the people behind it.

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