How to split profits with a co-founder if he has not invested in a particular asset?
Let’s say that a Founder and a Co-Founder are running a business with a 50/50 share in the company.
However the Co-founder has REFUSED to invest his money towards a particularly risky asset, but Founder did!😕
As a result of this risky investment (which Co-founder has no involvement in), Founder has managed to achieve huge profit gains for the company!😎
Do the Co-founder is still entitled to 50% of these profits even if he didn’t invest anything in this?
Is this something he needs to highlight in a shareholder's agreement?