Comment by dangrossman
2 days ago
From Reddit discussions, if they can be trusted, there is nobody who can remove Matt from any position. It's a private company and the investors were given non-voting shares.
2 days ago
From Reddit discussions, if they can be trusted, there is nobody who can remove Matt from any position. It's a private company and the investors were given non-voting shares.
> It's a private company and the investors were given non-voting shares.
My understanding is that the investors signed proxy voting rights over to Matt. They are mostly ordinary shares, and may be revocable. [1]
[1] https://ma.tt/2021/08/funding-buyback-hiring/
I am confused -- so if investors don't like the CEO, there is nothing they can do? Other than maybe taking their part of the money out?
Even "taking their part of the money out" is not guaranteed. Again, it's a privately traded company, so there's no open market. You have to find someone willing to buy your shares from you and make a deal with them.
he'd already be out if it was simple to force him out
Let this be a lesson to anyone investing in a startup: don't give any cash unless there's real corporate governance.
but the opposite is true too: don't take money from investors unless they let you keep control of your company. for every case like this there are probably a dozen cases where investors took control of a company and ruined it for the sake of making money.
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Same with trading your time for stock options (that you hope are eventually negotiable shares); trust is earned in drops and lost in buckets.
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