If I quit as CEO, do I keep my board seat?

I’m a Co-founder and CEO. I hold one of the company’s three board seats. Another is held by my co-founder, and the third by an investor. What happens to my board seat if I leave the company? Do I stay on the board? I want to protect my co-founder and the remaining team members, and do whatever I can to help them maintain control of the company. If remaining on the board would help, I’m happy to do it.

  • Are there ‘bad leaver’ provisions in your articles of incorporation? That may spell out what could happen.

    If you do leave, how much dead equity are you leaving? Meaning, will the company be fundable if you leave?

  • Shareholders elect the board. Whoever controls the equity decides.

    That’s why sometimes you have special classes of shares to give founders extra voting rights for cases just like this.

    Also if you leave early, and you lose unvested shares, that may affect your clout as well.

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