Hey I am on Medial • 8m
6. Voting Rights and Protective Provisions Be cautious of clauses requiring investor consent for major decisions (e.g., issuing new shares, raising debt, or approving budgets). Excessive protective provisions can limit operational flexibility. 7. Drag-Along and Tag-Along Rights Drag-Along: Investors forcing founders to sell their shares during an acquisition can affect your exit plans. Tag-Along: Protects minority shareholders (often positive but still worth reviewing). 8. Exit Clauses Investors might impose mandatory exit timelines (e.g., requiring an IPO within 5-7 years). This could pressure the business into premature decisions. 9. Pro Rata Rights Investors may request the right to maintain their ownership in future funding rounds. Be prepared for this during growth stages. 10. Dividend Preferences Watch for cumulative dividends, which can add a growing liability to preferred shares over time.
I work on Contract D... • 1m
Ever seen someone get a wedding invite — and they bring a plus-one who wasn’t invited but gets all the same perks? That’s exactly what Tag Along Rights do for minority shareholders. If the majority is selling their stake to an investor, you — as a mi
See More🚀 Legal Professiona... • 1m
🔍 How to Review Software Agreements — Legal Essentials ✅ Identify the Type: SaaS | License | Development | Support ✅ Key Clauses to Watch: License Scope IP Ownership Confidentiality Data Privacy (DPDP/GDPR) Payment Terms Liability & Indemnit
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