shareholders | Yair Udi

COMMON RESTRICTIVE PROVISIONS IN AN INVESTMENT TRANSACTION

July 16, 2023December 27, 2022 by Yair Udi

Promoting investment in a business and raising funds for it can be a complex process that requires careful legalization. Organizing an investor’s contribution to a company can involve a number of legal papers. Investment documents include a set of contracts signed between the company and the new investor(s). They usually contain standard information about the … Read more COMMON RESTRICTIVE PROVISIONS IN AN INVESTMENT TRANSACTION

PROTECTING SHAREHOLDERS’ INTERESTS WITH A “TAG-ALONG” PROVISION

July 16, 2023December 19, 2022 by Yair Udi

INVESTMENT GUIDE SAFE v. Convertible Notes - The Key Differences

In the previous article, we got acquainted with the concept of “bring-along” (or “drag-along”) rights, and also found out that there is another way to protect shareholders – the so-called “tag-along” right. Now we’ll talk in detail about that concept, what it means and how it can be implemented in the shareholders’ agreement. As you … Read more PROTECTING SHAREHOLDERS’ INTERESTS WITH A “TAG-ALONG” PROVISION

PROTECTING SHAREHOLDERS’ INTERESTS WITH A “BRING-ALONG” PROVISION

July 16, 2023December 6, 2022 by Yair Udi

Building a business and creating a company is not only exciting, but also a very important process that requires careful planning when protecting shareholders’ interests. Founders must be sure that their rights are properly secured from the very beginning. That includes their right to quit. Of course, selling a stake in a business is not … Read more PROTECTING SHAREHOLDERS’ INTERESTS WITH A “BRING-ALONG” PROVISION

Drag Along Rights

July 16, 2023November 27, 2022 by Yair Udi

A “drag along” right is a contractual arrangement between shareholders of a company, specifying that if shareholders holding a majority interest of a company sell their shares, they can force the remaining shareholders to join them (in other words, to “drag” the minority along). In doing so, the majority shareholders will offer the same incentives … Read more Drag Along Rights

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