hi guys,
We are facing a lot of problems in interpreting the companies act 2013:
1. Sweat equity for advisors – we are unable to issue stock options on a vesting schedule, or issue stock on a reverse vesting schedule. One workaround was to get someone in on a minor investment (say 1000 rupees) and issue stock on a reverse vesting schedule – but the new companies act has a minimum investment threshold of 20000 rupees.
2. Creation of two bank accounts to get money for funding – for private placement.
We are working a group of lawyers out of Bangalore, who have been very nice – but I think everyone is waiting for an acceptable interpretation of laws. I’m wondering how are the other startups faring ? I would really love the reference of a lawyer who has a solution around all these problems.