What are the typical rights attaching to a corporate investor’s shares?
What are the rights of the other shareholders?
We focussed on rights to income, capital and voting, as well as pre-emption, transfer, “drag along” “tag along”, and “co-sale” rights.
What rights do corporate investors, as well as founders and other shareholders, have to appoint directors or nominate observers to the board?
Have you considered board composition, quorum and directors’ conflicts?
What information about the company and its business is an investor entitled to?
What are the reporting obligations, and what are the confidentiality issues around information sharing?
Are there any company actions which will require the consent of the corporate investor or its appointed representative director in the future?
How are those rights shared with other investors?
What are the typical reserved matters, and what about the specific veto rights often sought by corporate venturers?
What are some of the challenges of implementing a commercial arrangement with a smaller business at the same time as an investment?
What are the issues relating to an eventual sale of the company, from “paths to control” to blocking rights?