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MRL (Management Rights Letter)

A Management Rights Letter (MRL) is a document that outlines the rights and privileges of investors in a company. Specifically, it outlines the terms and conditions under which an investor may be entitled to nominate one or more individuals to the board of directors of the company, to receive information from a company or to inspect a company’s facilities and discuss with the management.

MRLs are typically used in venture capital and private equity transactions, and are negotiated between the investors and the company at the time of investment.