Explaining And Analysing The Sources Of Founder-Investor Conflicts, A Perspective Through The Lens Of The Companies Act, 2013
Armaan Goyal, Jindal Global Law School
The scope of this research paper extends to discussing and analysing investor-founder conflicts within the sphere of the Companies Act, 2013(the Act). This is in order to streamline the paper considering the numerous investor-founder conflicts under other facets of law.
The paper will work to elucidate upon specific areas of contention between founders and investors in order to better understand the complex relationship of two crucial stakeholders in a company.
Therein, the research methodology is to meld the incidence of statutory provisions, stakeholder objectives, stakeholder leverage and jurisprudence to clearly elucidate most relevant investor-founder conflicts.
The topic at hand is worthy of investigation and of modern relevance considering the tremendous volumes of new startups (considering the governmental policies of ‘Startup India, Stand up India’). Whilst, on the other hand the investment market is uncertain due to COVID-19. Thereby, conflicts are more likely to arise, with the negotiating power of the investors substantially increasing.