Founder Restricted Stock 101

Early Growth Financial Services

By Sean Greaney: Originally published on Stubbs Alderton & Markiles, LLP Sean Greaney, attorney with Stubbs Alderton & Markiles, LLP gives an informative introduction to Restricted Stock for startup companies. What is founder restricted stock? Founder restricted stock refers to shares of common stock that are owned by a founder but are subject to forfeiture upon the occurrence of certain contractually agreed upon events.

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4 Deadly Legal Mistakes That Startups Make

Scott Edward Walker

Vesting Restrictions. The first deadly mistake relates to vesting restrictions. Otherwise, if one of the founders quits after a few months, he would take all of his shares with him.

Vistaprint Acquires Webs for $117 Million

Inc Startups

Haroon Mokhtarzada, the company's CEO, said of the Vistaprint deal: "Our companies share a common vision for the future of micro business marketing, and bring complementary products and competencies to the table. Three brothers founded Webs, which ranked on the Inc.

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Delaware Supreme Court Issues Important Decision Regarding Vote Buying and More

Recent Buzzes - VC Experts, Inc.

Original Title: Delaware Supreme Court Issues Important Decision Regarding Vote Buying, Stock Transfer Restrictions, Definition of "Stock Ledger" and Director Reduction Bylaws. To obtain a sufficient number of votes in support of its proposals, the Kurz faction sought to purchase certain shares subject to a restriction on their sale, transfer or assignment by providing that title to the shares would be transferred only when the seller was "entitled or permitted" to do so.

Lance Armstrong: What You Can Learn From His Failure

Inc Startups

Steve Jobs narrowly dodged a bullet because his backdated options were underwater, so he previously had them cancelled and exchanged for restricted shares. Lying, denial, cheating: There have been plenty of Lance Armstrong's in the business world.