Shareholder agreements for startups appear durable in calm periods, but stress reveals their weaknesses. A founder exit or a down round exposes governance gaps and determines whether the company can operate effectively in the face of conflict. Departures raise immediate questions, such as who controls unvested shares and if equity can be reclaimed without litigation. […] The post Drafting Shareholder Agreements for Founder Departures and Down Rounds first appeared on Traverse Legal.
