I have been a co-founder of a start-up that is beginning to take off and make some noise and hopefully is on the right path :)
The question arises because until now the 3 co-founders (me & a friend + another who joined us on the way) haven't signed an agreement yet.
The stakes we would have in the company were decided a while ago. The friend I work with is someone I know since I was at school, hence its moved so far since then with verbal agreement. Only new thing is that he would have right to an irrevocable proxy.
My question is How could an irrevocable proxy go go wrong for me ?
Things to note:
This company has been operating for a while now, about 8 months so our product is almost ready and we have clients waiting for deployment.
I am the technical founder of the company, I manage 6 technical employees remotely, help make business decisions and code myself in the remaining time, I do not get paid, have no monetary investment in the company and am still a student at university ( for another 2 months, after which i'll switch to this full time ).
The 2nd co-founder came up with the business idea, had put in all the investment to get the company where it is (quite a bit until now), manages ideas, timeliness, business contacts and sales. He is the one who is asking for rights to an irrevocable proxy.
The 3rd co-founder joined us along the way and handles only sales & clients at the moment.
The reason why I ask the question is not because I do not trust my co-workers currently, but I would still like to know what I'm going in for.