RUSSIAN ROULETTE CLAUSE
Companies bring together people with a similar vision and views on business, but it is not always easy for owners...
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MAKING A SECTION 83(B) ELECTION UNDER U.S. LAW
In our previous publications, we have drawn attention to the idea of vesting of options and reverse vesting of stock,...
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REVERSE VESTING: A MECHANISM THAT HELPS RETAINING FOUNDERS
As we have already discussed in our previous publications, the process of raising investments to a company may require several...
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LIQUIDATION PREFERENCES: WHAT INVESTORS CAN EXPECT IF A COMPANY IS SOLD
New businesses, and especially startups, can be risky for financial investments. Of course, investments always involve risks, but the possibility...
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COMMON RESTRICTIVE PROVISIONS IN AN INVESTMENT TRANSACTION
Promoting investment in a business and raising funds for it can be a complex process that requires careful legalization. Organizing...
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PROTECTING SHAREHOLDERS’ INTERESTS WITH A “TAG-ALONG” PROVISION
In the previous article, we got acquainted with the concept of “bring-along” (or “drag-along”) rights, and also found out that...
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PROTECTING SHAREHOLDERS’ INTERESTS WITH A “BRING-ALONG” PROVISION
Building a business and creating a company is not only exciting, but also a very important process that requires careful...
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Drag Along Rights
A “drag along” right is a contractual arrangement between shareholders of a company, specifying that if shareholders holding a majority...
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