[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.