How to quit your own company?

edited in General
What are the possibilities of one quiting an indie studio if they have started one? If you feel overwhelmed and feel that you want to start afresh. If you have never made money what is there to negotiate? Is it possible to negotiate taking an entire project if you are a majority share holder? What is the correct way of making this negotiation?


  • It depends. How many directors are there? How many shareholders? Are you an employee? In what capacity are you trying to get out?

  • Yeah, those are the important questions. I started a business with three other guys.
    I found out our CFO was cooking the books, and my attorney advised me to just get out. So I simply contacted CIPC and had them remove me as a director, and sent a letter explaining the problem to the other directors and that was that.

    However, if you are the sole director / shareholder I suppose you'll have to have a chat with your staff, and they obviously need to be given fair warning and severance packages (I think). Good luck man, it's tough leavning something you created behind :(
  • edited
    It depends. How many directors are there? How many shareholders? Are you an employee? In what capacity are you trying to get out?

    As I have mentioned, in case that you are a majority share holder, but your company has not made any money. Is it possible to ration that using projects?

  • The company has not made any more... What? Shares? Ration... Shares? Ration shares using projects?

    I'm afraid I don't understand what you're asking or trying to say. I think you need to be clearer about what you think "quitting" entails/means, and be clearer about what you're asking.
  • Ok lets break it down.

    Exiting as a Shareholder: If there is more than one shareholder then the specifics will be detailed in your shareholders agreement (if you don't have one, look to the MOI). The usual case is that a shareholder has to offer his shares to the other shareholders first, before being able to sell to other 3rd parties, this is true regardless of if you are the majority or minority shareholder. Importantly the company (and the companies funds) wouldn't be used to "buy" your shares. This should be the personal expense for the person buying the shares.

    Exiting as a Director: If there is more than one director, how you would do this would be detailed in the MOI, but usually you must given written notification to the board that you are resigning, they must accept the resignation, and then you can be removed from the CIPC system.

    Exiting as an employee: Your employment contract details how you can quit, but usually you just give notice.

    I assume you are asking if you could take IP owned by the company instead of being paid by another shareholder for your shares? Yes, technically you could, but it is not the shareholders IP they are giving away. You would have to get the board to agree to transfer the IP to you, and then the acquiring share holder would owe the company the equivalent of the value of the IP, which would probably be structured as some sort of loan.

    If you are the sole director and sole shareholder, then transfer the IP you want to yourself through a written agreement, and then deregister the company (If you are leaving there is little point the company still existing)
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