A founder of a company being told to step down from the board of the company he founded?

[Min George]

I have heard several times how a founder of a company is being asked to step down from the company. I mean they founded the companies and they are not allowed to be part of the board again.

How does it work that a business founder would leave the board of his company?

 

[Augusta]

Yes that's why there's a board of directors. When you have that in place then they are the ones to take decisions for the company because you bought them in to manage the business for uou

 

[Suba]

There are many reasons why a company founder can be replaced and no longer serve as part of the board of directors such as Changpeng Zhao, the founder of the Binance exchange. In addition, the company founder can also be replaced if the shares are owned by more than 50% by someone else.

 

[eLdavis]

I think this is one of the disadvantage of having a board of directors, or even share holders, if those with high amounts of shares comes together and their shares are higher than what you have put together, they can vote you out. I have seen this in only movies though.

 

[Springtime]

This is not uncommon in businesses. The founder step down can be due to a lot of reasons. Some voluntarily step down for retirement, some may be due to health reasons. Of course, there are situations that there are outside investors who bought a majority of the shares in the company and force the founder to step down.

 

[King Belieal]

Steve Jobs was told to step down from Apple Inc. A company he founded. He was later recalled to the company afterwards.

 

[Augusta]

This is not uncommon in businesses. The founder step down can be due to a lot of reasons. Some voluntarily step down for retirement, some may be due to health reasons. Of course, there are situations that there are outside investors who bought a majority of the shares in the company and force the founder to step down.

Well, I would agree for anyone to step down due to health purpose. if you die today that might or might not continue. So you choose life first.

 

[Min George]

A founder being forced out? It means the business grew beyond the founder and he lost relevance in the scheme of things.

 

[magnus2022]

The founder of the company is not smart enough and he have himself to blame. Except where he thinks that the board of directors genuinely want the best for the company.