
Old company threating shutting down, restructuring, & screwing me out of equity - AltonWells
I co-founded a small company developing drone tech. There&#x27;s a bunch of drama going on where they have outstanding liabilities and some tax problems making it &#x27;hard to raise&#x27;. They&#x27;re threatening to restructure &amp; form a new entity using the IP I helped develop. I currently own 5%.
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troydavis
Talk with a startup-savvy attorney. You’ll learn more about what’s called
“minority shareholder oppression.” Googling for that phrase and
[https://en.wikipedia.org/wiki/Shareholder_oppression](https://en.wikipedia.org/wiki/Shareholder_oppression)
will turn up a lot more and some examples of it in the wild.

The typical recourse is litigation in the state where the current entity is
formed. That litigation would also probably make it difficult for the new
entity to raise.

A typical first step is for your attorney to write a letter to the company,
board members, and majority shareholders to inform them of your concerns as a
minority shareholder (before they make changes). Hopefully this avoids
litigation.

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AltonWells
thoughts?

