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Rajan Paswan

Stealth • 8m

Last time we discussed dilution in SHAs. Today, we tackle the Board of Directors (BOD)! The BOD: This group oversees your startup's big picture strategy. The SHA defines how many board members there are and how they're chosen. Why it matters: Having a say in BOD selection ensures someone represents YOUR interests! They can influence crucial decisions affecting the startup's future. What to consider in the SHA: • Board size and composition: Does it allow for founder representation? How many board members will there be in total? • Election process: Do you have a say in who gets elected? Does the SHA outline a fair voting system for board member selection? • Board Removal Process: Does the SHA define the process for removing board members if necessary? Remember: A strong BOD can guide your startup to success. The SHA ensures your voice is heard! Next: Tag-along & drag-along rights - stay tuned! Here is Our Last Post(Dilution): https://medial.app/post/6629fb1dbdf11e638f6198b5

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Rajan Paswan

Stealth • 8m

Starting a startup is exciting, but understanding the shareholder agreement (SHA) is crucial. Today, let's focus on Dilution. What is dilution? Imagine you and a friend each own half a pizza (50% each). If you bring another friend in and share more

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Rajan Paswan

Stealth • 7m

We've covered dilation and the Board of Directors(BOD). Now, let's delve into Tag-Along Rights—An Essential Topic Imagine your startup takes off! A major player wants to buy the company, and your majority shareholder is ready to cash in. But what ab

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PRATHAM
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Based On what I have noticed, Reasons behind shutting down well funded startups: 📉 • Board Members dispute or improper management • Lack of TAM • The main point - Non sustainable business model ( most of startups couldn't monetize along with grow

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Saksham
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Bebyond • 3m

Tag Along v/s Drag Along Rights When drafting agreements, Tag Along and Drag Along Rights are essential clauses that shape how investors and founders navigate ownership changes. Let's break down the impact from both perspectives: For Investors: 1.

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Demystifying the Ownership Structure Clause in Shareholder Agreements (SHA)📍 The Ownership Structure clause in your SHA is crucial. Here's why: 1. Defines Equity Distribution: It outlines who owns what percentage of the company. This impacts deci

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AjayEdupuganti

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Saksham

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We are currently searching for a Chief Marketing Officer (CMO) and a Chief Financial Officer (CFO) to join our team as co-founders and board members. As a startup, we are in the early stages of development and are looking for individuals who are will

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Transfer Rights Clauses in SHAs from an Investor’s Perspective!! When investing in startups, a well-drafted Shareholders Agreement (SHA) isn’t just a formality, it’s the foundation that protects their financial interests and ensures strategic contro

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