Maryland  |  Business Law

Legal Question

Asked on: 10/23/13, 8:18 am

I started a company about a year ago and signed on 2 investors each having % equity. We signed contracts stating that they are able to maintain equity if they work at least 12 hours a week on improving the company. After about a year the flame died out. Right before the wheels stopped turning I tried to get my investors interested in a new project but it didn't really have the impact I was hoping for. I presented the idea as a product of the company and when asked if it will be apart of their equity I said yes. However, they never followed through on it...then everything really died out. After a few months, I decided to take that idea and turn it into a completely separate company! I have done just that and I believe it will be a big success when we launch. I'm worried that my investors from the previous company will try and sue me for profits if the company is bringing in more than 7 figures annually later on down the road. If this became an issue later on down the road am I in trouble?

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