Concerned About Legal and Financial Risks After Leaving a Startup? Here's How to Protect Yourself

I worked with a startup as a director with 25% shares and also as an all-round sales cum operations person from 2014 to 2018. I resigned from the organization as an active member in January 2018. Although I stopped working and moved on to the family business, I didn't formally resign from the post due to certain bank liabilities. It's been almost 18 months, and now I feel certain irregularities might be happening, and I should have resigned formally.

Protecting Yourself from Legal and Financial Irregularities

What should I do to protect myself from any legal and financial irregularities that might have occurred in my absence?

Thanks in advance

Hi,

You can detail the background of your illness in the resignation and request for relief predated. The board has to approve, and your relieving date should predate the date when you have actually left. This way, they can't hold you responsible for any irregularities that took place in your absence.

Thanks, V. M.

Should I talk to the directors in advance, or should I straight away mail them my resignation letter.

Hi there,

Of course, first discuss and then proceed with resignation. In your email or resignation communication, highlight your actual period of absence indirectly (e.g., "I regret my non-participation due to my illness...") - this can serve as proof in the future in case of any disputes.

I hope this helps!