.png){kind=small}
The court must have two founders of start-up to pay the third founder part of the special in the following the company’s sale despite its shares in the company
August 2019
On judicial intervention in the “Rules of the Game” of high-tech companies – in a recent precedential ruling, the Tel Aviv District Court intervened in the contractual agreement between company founders and ordered a retroactive cancellation of the waivers signed by one of the founders. The court ordered two of the founders of the startup company that was acquired, to pay a portion of the sale proceeds to the third founder (based on a value of approximately $ 200 million), despite the fact that the said founder had given up his shares and returned them to the company before the acquisition was completed.
You are invited to read more about this presidential ruling and its possible implications, in the customer update click here!
