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Rajan Paswan

Building for idea gu... • 1y

IMAGINE THIS: You and your co-founder, once an unbeatable pair, face a problem. A big decision for your startup depends on a disagreement. Without a plan, this argument could stop your business. Deadlock Provisions in your SHA can help you in these situations. These provisions outline a clear process for resolving situations where founders (or shareholders with equal voting power) can't reach an agreement on a crucial issue. Common Deadlock Resolution Methods: • Supermajority Vote: Increase the voting threshold required to pass a motion. For example, requiring a 75% majority vote instead of a simple majority can incentivize compromise. • Buy-Sell Option: One founder can purchase the other founder's shares, allowing one party to take control and move forward. • Independent Mediator: A neutral third party facilitates discussion and helps founders reach a mutually agreeable solution. If You Find This Post Useful Scroll Down in Recommendation to Find My More Such Post or See Profile.

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