Compliance Stuff

Government investigations can be costly. A simple subpoena for documents could entail collecting hundreds of thousands of documents from your email servers and personal devices, hiring attorneys to review and produce documents, and sitting for hours of interviews with government investigators. And if that investigation uncovers evidence of violations, the consequences could include significant penalties for a company and its principals. Private companies are not immune from these risks. The anti-fraud provisions of federal securities laws apply to private companies, and the US Securities and Exchange Commission (SEC) has not shied away from pursuing private companies (as well as their officers and directors) for alleged fraud. The US Department of Justice (DOJ) also closely scrutinizes startups and their founders. And because of the relatively long statute of limitations for securities fraud (five years for SEC civil enforcement and six years for DOJ criminal prosecution), statements m...

When you’re launching a startup, it’s easy to blur the lines between owners, decision-makers and doers—especially when you’re all three. But as soon as you raise money, add a co-founder, or bring on outside help, things get real. Understanding the roles of shareholders, directors and officers isn’t just a corporate formality—it’s how you protect control, avoid legal missteps, and run your company like a pro. Here's the breakdown every founder should know. The Three Roles (and What They Actually Do) Shareholders = Owners Shareholders own the company, hold voting rights and (eventually) get the financial upside . By design, shareholders vote on major corporate matters—such as electing directors, approving mergers and authorizing significant structural changes—while delegating day-to-day management and operational authority to the Board of Directors and corporate officers.   Board of Directors = Strategic Gatekeepers Think of the Board of Directors as the grownups in the roo...