Login

Post on Medial

Rajan Paswan

Stealth • 6m

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 about you, the minority shareholder? Tag-along rights in your SHA ensure you don't get left behind. Here's how it works: • A major investor decides to sell their controlling interest in the company. • With tag-along rights, you have the option to sell your shares alongside them at the same price and terms negotiated by the majority shareholder Why are Tag-Along Rights important: • Liquidity Opportunity: Offers a chance to cash out and secure returns if a major exit opportunity arises. • Fairness and Transparency: Ensures you're not pressured to sell at a lower price or left holding onto illiquid shares during a majority shareholder exit. Last Post(BOD): https://medial.app/post/662b4609cd3653c2d04cdc67

8 replies13 likes
2
Replies (8)

More like this

Recommendations from Medial

Image Description
Image Description

Saksham

 • 

Bebyond • 2m

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.

See More
6 replies6 likes
2
Image Description

Rajan Paswan

Stealth • 6m

As a founder, your startup is your baby. But what about when that Golden Exit opportunity appears? Drag-Along Rights in your Shareholder Agreement(SHA) are crucial for ensuring a smooth acquisition process. What are Drag-Along Rights? They empower

See More
2 replies6 likes

Saksham

 • 

Bebyond • 1m

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

See More
0 replies3 likes
1
Image Description

Saksham

 • 

Bebyond • 3m

Shareholder Agreements: The Bedrock of Your Business A well-crafted shareholder agreement is crucial for a company's success. As a corporate lawyer with years of experience, I've seen firsthand the impact these agreements can have. Key clauses to c

See More
2 replies9 likes
4

Saksham

Stealth • 4m

Understanding Shareholder Agreements (SHAs) in M&A Did you know that the terms of your Shareholder Agreement (SHA) depend on the level of your stake acquisition in a company (SPA)? Here's a general overview of how SHAs differ based on acquisition ty

See More
0 replies3 likes
2

Rajan Paswan

Stealth • 7m

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: Havin

See More
0 replies4 likes

Saksham

 • 

Bebyond • 3m

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

See More
0 replies12 likes
1

Saksham

 • 

Bebyond • 3m

Startup Founders: Is Your Shareholder Agreement Protecting Your Vision? Let's talk about a critical component that often gets overlooked: the Voting Rights Clause. As a founder, you've poured your heart and soul into your startup. But have you con

See More
0 replies11 likes
5
Image Description
Image Description

Harsh Dwivedi

 • 

Medial • 2m

Anupam Mittal might be forced out of Shaadi.com? WestBridge had invested ₽166 crore in the Shaadi.com back in 2006, with the expectation of an exit within 5 years. Fast forward to today, and that exit still hasn't happened. Now, WestBridge is invoki

See More
7 replies38 likes
7
Anonymous
Image Description
Image Description

Anonymous

Stealth • 9m

Is the “Dropout” tag worth it? Does it really benefit you? I have seen a wave in current entrepreneurs and freelance gurus promoting their “Dropout” status as a major thing.

13 replies22 likes

Download the medial app to read full posts, comements and news.