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Ask HN: Quarterly result info of startup after quitting in SV?

4 points by hatred 7 years ago · 3 comments · 1 min read


For an ex-employee with some exercised equity at a SV startup, are they eligible by law to get quarterly results?

jpeg_hero 7 years ago

Hahhahahahhahahahahahha.

Yeah, not going to happen.

You probably have common stock with no “information rights.”

Buut... if you want to be a bastard, and if it’s a CA company, as a shareholder you have the right to “inspect the books and records” of the company. If you call up the CFO and suggest you want to do this, he might give you some reports to keep you satisfied.

  • hatredOP 7 years ago

    Interesting. Do you happen to know if there is a formal process to do so or just an email would suffice?

    • jpeg_hero 7 years ago

      Where is the co. incorporated?

      No formal process.

      If CA, write a letter and reference the statute: http://www.jerryburleson.com/shareholder-demand-for-inspecti...

      If DE: http://www.startupblog.com/blog/shareholder-inspection-right...

      Obviously DE is more company friendly than CA.

      Your best bet is to: 1st) request nicely from the CFO some updates 2) if that doesn’t work, flex some inspection rights to get him to give you the updates.

      You don’t actually want the inspection, and for me it’d take a court order before I allowed it, so your best bet is to play nice and be less of a pain in the ass to get what you want then litigating it.

      Let me stress this again, you are a supplicant in this, you are far better off begging and cajoling and politicking with the CFO to get what you want if it’s important to you. You have zero leverage.

      If I got a request from some random ex-employee shareholder requesting info, I’d say to them “see you in court” guessing that you don’t have the $100k’s in legal expenses needed to actually force the issue

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