[NonIdentifiable]

Yes, he is a friend, and yes we did sit down with him and talk to him. As mentioned in my post, after that it still went on for another month, and the monies still has not been returned.

If he was having money troubles I would have hoped he would talk to one of us however that has not been the case. It is very disconcerting to us that he has pretty much gone quiet, it has been hard to get ahold of him. I don't know, but it just feels like things have changed since we first started the corporation 2 years ago.

[dtran]

I didn't realize that he had gone incommunicado. Regardless, I would still try to reach him from any possible form of communication and talk to him.

If he is clearly avoiding you guys while continuing to misspend company money, then I would talk to a lawyer. Did you guys set up any kind of vesting schedule for each of your 20% of the company? It's a fact of startup life that founders will sometimes leave, and vesting schedules help ease the legal mess that ensues.

[NonIdentifiable]

No vesting schedules, so that makes it all the more hairy from a founder leaving stand-point. At the time we started working with him he was a responsible individual who knew what he was doing. It is only recently that these issues have popped up.

[dennisgorelik]

Considering that you do NOT have vesting agreement and have serious troubles in communication with one of key founders -- you should consider your company dead. Try to cut losses: dissolve the corporation, distribute the funds, save your time, and start another company with the remaining founders you trust.

[byrneseyeview]

If he's welshing on debts and not taking phone calls, that's really bad news. You wouldn't start a company with a cofounder who behaved like that, or if you did he wouldn't have access to company accounts.

[NonIdentifiable]

Well, the corporation was started 2 years ago. At the time it was a completely different situation. That is kind of the dilemma.