The Startup Nightmare: How a “Ghost Co-Founder” Can Scare Away Investors You’ve done it. You’ve found the perfect co-founder, come up with a brilliant idea, and you’re ready to change the world. In the early days of excitement and trust, it’s easy to split the company’s ownership (equity) and dive right into work. But what […]
Dead Equity, Dead Startup: The Critical Danger of a Ghost Co-Founder Read More »
Your Cap Table Isn’t Just a Spreadsheet—It’s Your Startup’s Foundation Think of your company’s capitalization table (cap table) as its foundation. It’s the official record of who owns what percentage of your company. When it’s clean, simple, and logical, it provides a stable base for growth. But when it’s messy, confusing, or lopsided, that foundation
What is a Broken Cap Table? How to Avoid This “Uninvestable” Red Flag Read More »
More Startups Die from Suicide Than Murder: The Threat of Co-Founder Conflict You have a game-changing idea, a solid business plan, and a co-founder you trust. What could possibly go wrong? As it turns out, the biggest threat to your startup might not be your competitors, but the person sitting next to you. Data shows
A Founder’s Guide to Preventing Destructive Co-Founder Conflict Read More »
Corporate governance in India often hinges on balancing majority rule with minority protections. Oppression and unfair prejudice represent critical threats to this balance, where majority shareholders may exploit their position to the detriment of minorities. The Indian Companies Act, 2013, addresses these through targeted provisions, evolving from earlier laws to provide robust remedies. This blog
Oppression and Mismanagement – Rights of Minority Shareholders Read More »
Shareholder disputes can tear apart even the most promising businesses, often stemming from clashes between those who hold the reins and those on the sidelines. Imagine a thriving tech startup where the founding majority shareholders decide to pivot the company’s direction, leaving minority investors feeling marginalized and their investments at risk. This scenario highlights a
Navigating Shareholder Disputes: Majority vs. Minority Conflicts in Corporate Governance Read More »
IIn India’s bustling business ecosystem, complex ownership structures and rapid growth have led to a rise in conflicts that can silently erode shareholder rights. Chief among these are Share Dilution and Valuation Disputes, a nightmare scenario for any investor. Imagine investing your life savings in a promising startup, only to watch your ownership stake shrink
Share Dilution and Valuation Disputes Under the Indian Companies Act, 2013 Read More »
Disagreements over company direction refer to conflicts among stakeholders, particularly shareholders and directors, regarding the strategic path, operational decisions, or overall vision of a company. In the Indian corporate context, these disputes often arise in closely held companies or family-run businesses where differing views on growth, investments, or management can escalate into legal battles. Under
Disagreements Among Directors On the Management of Company: Rights and Remedies Read More »
In the realm of corporate governance, fiduciary duty serves as a cornerstone, ensuring that those in positions of power act responsibly. This blog post explores the concept of breach of fiduciary duty under the Indian Companies Act, 2013, guiding readers through its legal foundations, practical implications, and remedies. We’ll start by defining the duty, examine
Understanding Breach of Fiduciary Duty Under the Indian Companies Act, 2013 Read More »
Introduction: Protecting Directors from Unwarranted Liability The Supreme Court recently addressed an important issue regarding whether tax dues of a private company can be recovered from its directors. In the case of Shankar Rudra v. State of Uttarakhand & Ors., the Court ruled that the Uttarakhand Value Added Tax (UVAT) Act does not permit recovery
Tax Due Recovery from the of Directors of a Company – Supreme Court Read More »
How Corporate Law Firms for Financial Recovery Can Assist Your Business Corporate law firms for financial recovery are essential partners when your business faces financial challenges. These firms provide specialized services designed to help companies navigate through financial distress, recover lost assets, and rebuild stability. Whether it’s insolvency issues, restructuring, or legal representation, a corporate
Corporate Law Firms for Financial Recovery: Legal Solutions for Business Challenges Read More »
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