Legal basics for startups, complete DIY guide: Vesting • Hacker News Board

Re: Legal basics for startups, complete DIY guide: Vesting

#11

Post by gamblor956 » Thu, Jul 03, 2014, 9:36 PM UTC

dsplatonov wrote: post #5

wooster wrote: post #4

I'm flagging this post because it contains bad advice. For information on this topic from someone who actually knows what they're doing, please read "An Introduction to Stock and Options" by David Weekly: http://www.amazon.com/Introduction-Stock-Options-David-Weekl...

Please specify with what you disagree

Pretty much all of it is contrary to the advice you'd get from any U.S.-based law firm (and based on my experience, from U.K. firms as well).

Your advice may be appropriate to Finnish startups, but you don't mention any geographic restrictions on your advice.

Re: Legal basics for startups, complete DIY guide: Vesting

#12

Post by dsplatonov » Thu, Jul 03, 2014, 9:41 PM UTC

mynewwork wrote: post #6

Dumb question: what is the status of the un-owned (un-vested) portion of shares in the first years? Suppose two people, A and B, are equal partners each vesting towards 50% ownership in 3 years. After the first year, they both have vested ownership of 16.6%, what is the status of the other 66% of the company? Does the corporation as an entity own 66% of itself? Do they both really own 50% of the company, with an agre…

this is a good question. basically the total amount of shares are reserved for you (in the example - 50%)-no new shares are issued. in the article I provided our(Staply) vesting procedure-if I or my partner leaves the company, he gets a certain percentage of the total amount of shares in accordance with Vesting, other shares destroyed, so the stake of each remaining shareholder increases proportionally to the amount of destroyed shares. in the article you can find example of the statements. however, vesting is quite flexible procedure and you can easily put the procedure, described in your comment

Re: Legal basics for startups, complete DIY guide: Vesting

#13

Post by tobinfricke » Thu, Jul 03, 2014, 10:34 PM UTC

gingerlime wrote: post #2

I guess I lived in a cave for too long, but what is "Zuckerberg's case" exactly?

I wondered this too. From the link provided by dsplatonov:

"On founder equity (we couldn’t miss this one!): All founders must be on vesting schedule. Mark heard nothing about vesting at the time when they started the company. They just divided equity, and then his co-founder Eduardo left."