Page 70 - Microsoft Word - Updated Book Draft 2 23 2017 (1)

contrast, a legal battle over a questionable non-compete

can cost many thousands of dollars, with uncertain

results.

Chapter 6

Start-Ups and Closely Held Corporations:

Special Issues

For the most part, the rules described above apply

equally to all forms of employment. There are, however,

some issues that deserve special attention for closely held

companies and start-up companies.

A. Fiduciary Duty

It is not uncommon in small, closely held

companies and start-ups for key employees to also have

an ownership interest in the company. This can happen

where key employees start the company together; it is

also fairly common where a start-up has limited funds to

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