Tools

Reserved Matters


Usually, in the early-stage funding, the investor receives only a minority participation. However, the investor receives the right to vote for: the dissolution of the company, changes of the constitutive act which can affect the investor’s rights, a guarantee limited by a threshold, budget approval, board changes, agreements relating to intellectual property rights, dividend distribution agreement, the ESOP mechanism – employee stock option pool, sale of shares during lock-up period; 

These investor rights can be found in the Shareholders Agreement, in the Reserved matters section. The section Reserved Matters can seem invasive for the founders; However, it only assures the investor that the funds are being used strictly to grow the startup. 

Latest Tips

Anti-Dilution

Anti-Dilution

Startup Support
Reserved Matters

Reserved Matters

Startup Support
Shareholders Agreement

Shareholders Agreement

Startup Support