LegalVision’s Startup Manual is essential reading material for any startup founder looking to launch and grow a successful startup.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n The first step is to determine the nature of the other performances and its cause. While the causes of underperformance will largely depend on the circumstances, typical examples include:<\/p>\n\n\n\n Likewise, the cause of a performance may vary. It may be that the co-founder has certain expectations they cannot meet. This may be because they do not have adequate experience or the technical know-how to operate in their role. Alternatively, it may be due to:<\/p>\n\n\n\n In any event, you must understand the nature of the underperformance before pursuing any action. <\/p>\n\n\n\n Once you have identified the nature of the underperformance, the next step is to see if any legal documents govern the relationship between the cofounders. If your startup is incorporated as a company, which most are, you may have a shareholders\u2019 agreement<\/a> in place.<\/p>\n\n\n\n A shareholders\u2019 agreement is a private contract between co-founders separate from the company’s constitution<\/a>. Most shareholders’ agreements have provisions that detail how cofounders will resolve disputes between themselves. <\/p>\n\n\n\n For instance, there may be a provision to refer the dispute to a mediator<\/a> or arbitrator. The agreement may even specify the rights and obligations of co-founders, which, if the co-founder fails to uphold, can indicate their underperformance.<\/p>\n<\/div>\n\n\n\n Where an agreement is in place, all parties must follow its procedures. The exception is, of course, if all the parties agree to wave the effect of an existing agreement. To this end, where provisions are in place, and one or more cofounders ignore them, the aggrieved cofounder will have a claim against the offending cofounders for breach of contract.<\/p>\n\n\n\n The same principles apply if your startup is structured as a partnership governed by a partnership agreement.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n1. Identify the Co-Founder’s Underperformance<\/h2>\n\n\n\n
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2. Review All Co-Founder Agreements<\/h2>\n\n\n\n
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\n UK Startup Manual<\/div>\n
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