Why we picked it This is the explainer written for exactly your situation: two founders, 50/50, no tiebreaker. It lays out the full menu you can put in your shareholders agreement before you need it, from a neutral third party who casts the tie-breaking vote, to a mediation step, to the buy-sell endgame, and names each shotgun variant (Russian Roulette, Texas Shoot Out, adjusted fair market value at a 125% buy or 75% sell) so you can pick one deliberately instead of discovering you have none.
How to Resolve Deadlock in 50/50 Co-Founder Situations
From SPZ Legal by SPZ Legal 12 min read
- Bake the deadlock mechanism into the agreement while you still get along; retrofitting one mid-fight is nearly impossible
- A neutral third party who casts a tie-breaking vote keeps ownership 50/50 while ending the paralysis
- Shotgun clauses come in flavors (Russian Roulette, Texas Shoot Out, premium/discount buyout) and you choose the one that fits your cash reality