As someone unfamiliar with investment contracts, what's the typical burden of proof like for comparable "nuclear option" moral clauses? Is there typically some kind of evidence required in the contract? Or is it just assumed to be "whatever will hold up in court"?
To be clear, I think this is a very interesting idea, and am in fact a little sad it isn't common place (it seems like something that should be covered by the kind of morality clauses which I understand to be common place). However, an idea like this needs to be enforceable to be practical and thus valuable.
EDIT: Since this is an often controversial subject, I want to be very clear: I'm not trying to imply that founders/employees will make these claims up. Rather, that assertion is one which is very likely to be used by the well-paid legal teams of whoever you're trying to evict from your board. Would this kind of clause actually stand up in court under that kind of assault?