We are in the process of setting up a board structure for our startup. Everybody on the board will have their own veto rights on important matters, such as capital injection, spending limits, getting loans etc..
For the rest of the decisions... we may need the 5 th member to avoid dead lock
There are 2 founders and 2 investor groups. We want to set up a structure with 5 seats 3 for the founders and 2 for investors in order to avoid a deadlock.
For the 5 th seat there are several options.
- Get a close friend
- Set up a seperate company with 2 founders and get the 5 th seat with the new company. (Although this seams like a workable idea, one of the founders will have to step up for the seat. This makes 2 votes for one founder on the board and one vote for the other.
- I'm not sure if this is possible. Give 1.5 voting rights to founders to sum up to 5.
What are your suggestions ?