What Happens When the Boss is Pushed Out?

An item in today’s news caught our eye: Tex Edwards, the founder of 2 Degrees, is suing his company in the Employment Relations Authority. 

We have acted for quite a few people who have founded successful companies, and even charities, who have subsequently found themselves pushed out or disadvantaged by the board that they chose. Because the founder has an emotional engagement with their creation and because they thought of the board members as friends, these kinds of employment disputes can really hurt. When this type of thing happens, it is common for the employee/founder not to seek help as soon as they should have because they can’t believe what is happening to them. Unfortunately, these types of unfair and poisonous situations don’t usually get better by themselves.

We aren’t privy to any of the details of the 2 Degrees case, but it does serve as a reminder for those found companies, to be careful who they choose to help them with the governance of the company, and to be watchful if they start to feel that something isn’t quite right any more.