i think you are mixing up profit sharing shares and equity shares.
it sounds like you were offered 50% equity shares at the beginning. But since you wanted to be shielded from loss, you turned that down and agreed to 10% of profit shares (dividends if you will).
At some point, you were upgraded to 25%, still profit sharing shares, since you had no risk. Then that was diluted to 20%
The rules of the game did in fact change, but you were given the option to play under the new rules or leave the game. That is perfectly fair. They did not force you to pay for the losses because that's not what the contract said. But they essentially gave you the option of converting your profit sharing shares to equity shares (had you chose to do so, since they were equity shares, you would have been responsible for a part of the losses).
You didn't accept to renegotiate the terms and I don't think anyone disputes that. That's why you were fired. You were given the option of renegotiating, and you chose not to. As such, your employment with the company in question was terminated. As in all terminations, you kept your pay from before the termination and they owe you nothing more.
profit sharing shares dont exist what does exist are
called preferred shares and the conditions for preferred shares vary from company to company based on contract conditions, for example Zuckerberg shares on Facebook have more voting power so he keeps the voting majority even if the percentage is lower that 50%, my preferred shares do not take loses simple like that
Actually, they both exist.
Preferred stock traditionally actually has no voting power. There are of course exceptions (I an not familiar with FB stock), but while preferred stock has preference of dividends over common stock, common stock actually has more voting power (once again with some exceptions like the issuance of new preferred stock).
Profit sharing shares is traditionally given to employees of a company as part of their compensation package. For example, I work for Tech Machines Inc. in the Widget Sales department. My salary is $100,000 a year. However. as part of my compensation package, I also get profit sharing from the profits that my department makes. Let's say that the company determines that 10% of our net profits will be distributed to employees. There are 100 shares of profit sharing total, and since I am the supervisor, I get 20 profit sharing shares. The other 8 guys who work for me get 10 shares a piece. So if our Net profit for the year is $1,000,000 then the company pays out $100,000 in profit sharing. Of that, since I have 20 shares (out of 100), I get $20,000 bringing my annual compensation to $ 120,000 (plus other benefits). The other 8 guys on my team get $10,000 a piece.
Going back and reading the contract, "myself will receive a financial compensation of 10% of the
profits of the previously mentionned website, every month" [sic, emphasis mine]. No where in the contract does it say anything about issuing you preferred shares. It specifically uses the word
profits.
That being said, we are getting a bit off track. Usually, companies, before they fire workers, if the workers are of significant value, have a severance agreement with their employees. Do you think some sort of severance pay would be to your satisfaction?
And if not, what do you think a satisfactory result should be?
Once again, in case anyone is unclear on the matter, I am completely neutral in this case. I actually have no idea who BFX is or what they do, and have met none of the parties here, but I am just trying to help make the community a bit better by facilitating a dialogue and "arbitrating" if you will. (Which is also why I don't understand the insults being thrown my way). Clearly, you're not just here to bitch and moan--there is something that you, "myself" wants from this. What resolution would be to your satisfaction?
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