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CAUTION: Director Veto Rights in Financing Documents May Constitute “Disproportionate Voting”
By Lewis Geffen
Section 141(d) of the Delaware General Corporations Law (DGCL) allows the certificate of incorporation (COI) of a Delaware corporation to confer upon one or more directors voting powers greater than or less than those of other directors, thus resulting in “disproportionate voting” rights amongst the Directors.
Founder’s Stock – a Legal Fiction
By Michael Bill
In common usage, a founder is an individual who creates or helps create a company, but in legal terms, there is no such thing as a “founder” or “founder’s stock,” only early participants in a company’s organization and ownership of its initial equity capital. Why is this so? Because, for all practical purposes (from a startup’s point of view), there are two types of stock – common stock and preferred stock – and “founders” are just the initial holders of the company’s common stock, usually before any financing, in-licensing, or contribution of assets.
MintzEdge Entrepreneur Perspective: Building for Success - John Sarkisian (Motion Ventures)
John Sarkisian, founder of sports and lifestyle venture capital fund Motion Ventures, explains how he built and funded numerous companies in the real estate, restaurant, sports and technology industries and guides entrepreneurs on how to raise money and get successful exits in each of these varied industries.
MintzEdge 101: Running a Growing and Evolving Company - Patrick Henry (QuestFusion)
Jeremy Glaser, Co-chair of the Mintz Emerging Companies and Venture Capital Practice, discusses key lessons for entrepreneurs running growing with companies with Patrick Henry, the CEO and Founder of QuestFusion.
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