Is there any kind of clause or legal structure that would prevent the kind of alteration to ownership structure you describe above? It seems like you’re saying anyone can do anything at any time. That’s scary and I feel like we need laws against that, or a different structure for representation of workers.
This is largely true at any smaller seed maturity or even Series A maturity.
As a sibling commenter mentioned, companies do have a fiduciary duty. But realistically, if the shareholders are composed of relatively unsophisticated investors/employees, you can do anything without being sued.
I obviously don’t subscribe to this kind of behavior at my own company, but being in the position it has opened my eyes the extent to which one could go if you were very greedy.
