Business Lawyers Blog
How Can a Founder be Removed as an Employee?
You may expect the founder of a company to remain in charge of the enterprise until it the founder either retires or the company closes up shop. After all, the company would not exist without the founder, so they should retain control over their own business, right? However, there are situations where founders and CEOs are removed from their positions in an organization.
It may not seem fair that a founder starts a business from scratch, work long hours every day to build the business, find investors, and then have the investors decide that someone else should lead the company in further growth. When money is on the line, however, investors will make sure to do what is best for the company. Ousting founders seems particularly common in the tech industry, and the following are only some examples of removed founders: