Can we raise funds and sign a term sheet without a shareholders agreement?

My co-founder refuses to complete our shareholders agreement. He has always tried to avoid conflict. Every time we come to a contentious issue in the agreement, he doesn’t want to discuss it. We can’t resolve key issues. The lawyer hasn’t been able to persuade him that this needs to be done.

We now have firm offers for $750K seed investment and we need to sign the term sheet. Can we raise funds and sign a term sheet without a shareholders agreement?

I'm having a very difficult time dealing with conflict in my team

I hate conflict. I have been like that since I was young. It’s not that I want to please everyone or have everyone as a friend, but I hate conflict.

We have four people in the business. I thought about us as a team and I never imagined real teams having conflict. When people disagreed I did not know if it was personal or business. The more this happened, the more withdrawn I became.

I’ve now reached the stage where asking people to do something makes my stomach turn. If I’m going to stay in business I think I need to see a therapist.

My first hire was negatively affecting staff morale

As CEO of my business, Mary was my first hire and we have been through a lot together. We were very close but as the business and team have grown, we do not spend as much time together.

Last week the team decided that the new software program would go live at the end of the month. Mary did not agree with the decision. She didn’t listen to anyone even though software is not her area of expertise. She argued with everyone. She kept saying she was the first employee and she knew what was right.

I could not get her to see reason. Eventually we had a personal discussion. She told me she no longer trusted me and that I had broken all my promises to her. I simply could not deal with her. Later, I was approached by several members of the team who said it was becoming more and more difficult to work with Mary.