Co-founder of the company wants to quit

710 votes

It seems to me that you want to continue the business while the person who started the business wants to quit. If you "joined" a proprietorship firm, were you only an employee or a partner? If you were only employed by the owner, then you are an "employee" and he will continue to have ownership rights. But you have mentioned "equal stakes" so I gather that you might have become a co-owner of sorts - did you create an agreement for equal stakes? If you did, that Agreement might also lay down the provisions for separation - i.e., how to cut ties with each other and pursue your own paths. If not, then you can enter into a settlement. My advice is, you can enter into a settlement with him where you "buy" his share of the firm so that you can become the full owner and continue the business. Please understand that if you both were co-owners, then it is likely that he will have some share in the existing entity. Sometimes, one of the co-owners cannot continue the business under another name or by creating another entity (like a Private/ Public Company) without the permission of the co-owner. So it would be prudent to discuss with your co-owner and enter into a Settlement where you can protect your interests as well take full control of the business. Please note, this legal advice is based only on the information provided in your query and is not my final legal opinion. A settlement has to be carefully drafted, keeping in my all legal provisions so as to avoid future litigation - I recommend that you engage the services of a lawyer for it.

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