If you have a tech start up or you are in a partnership business and one of your Co founders leaves the company, your biggest problem should be what to do with his equity.

If the shares were subject to a vesting schedule your problem is half solved.

The exiting co-founders shares or equity will be dealt with based on the terms of the shareholders Agreement particularly the share vesting schedule.

If a founder leaves the company with a large chunk of equity standing to his

credit without a share vesting schedule.

Then you have a more serious problem than you can imagine.

Share vesting serves two main purposes...

1. As an incentive

mechanism to make the founder stay with the company for the long term.

2. As a protective

mechanism in case the founder leaves the company.

If shares are not vested over a period of time and a Co founder say, your CTO leaves , the ugly incident that you will have to deal with is a case of Monkey dey work , baboon dey chop.

This is because the founder who is leaving or has left will always have a claim on any gains or profits your company makes in the future to the value of their equity.

Besides having a claim on the company's finances, they can still exercise their voting rights in the mcompany even though they are no longer with the company.

if you have any claririfcagion to make aorund shares vesting or cofounder issues, reply this email and lets jump on a quick call to see how you can be helped.