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DHey everyone,
I need some advice on handling a delicate situation with my startup.
My co-founder and I started a funded startup with investors involved. We’ve now decided to shut it down, and we’re in the middle of the wrap-up process, which is expected to take several months.
In the meantime, my co-founder applied for a job and received an offer. However, his new employer is asking for a No Objection Certificate (NOC) from the Board of Directors to confirm that he has no obligations or liabilities with our company.
Now, here’s my dilemma:
• While our investors are aware and have no issue with him moving on, we still have some big liabilities on our books that will take time to resolve.
• I don’t want to issue an NOC that explicitly states he has “relinquished all roles, responsibilities, and obligations” or that he has “no outstanding commitments or liabilities”, because that could backfire on me later.
• At the same time, I want to ensure he can join the new company without unnecessary roadblocks.His employer seems to want something official, but I don’t want to word it in a way that could cause legal or financial issues down the road.
My cofounder gave me this template was
“This is to formally certify that X, who previously held the position of Founder and Chief Executive Officer at Y, has relinquished all his roles, responsibilities, and obligations with the company as of [date].
We confirm that X has no outstanding commitments, liabilities, or dues towards Y. He is free to pursue any new professional opportunities, including employment with your esteemed organization.”
But this temple does not feel right to me
But since we still have liabilities, I fear this could backfire against me later. And i dont want to write this under my official emailWhat’s the best way to handle this? Is there a safer way to draft the NOC that keeps things neutral while allowing him to move on? Has anyone dealt with something similar before? Would really appreciate any advice!
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