Preferred stock is commonly used for venture capital and private equity investments. It gives the investor the ability to convert to common stock if the deal succeeds, and also includes protection of the liquidation...more
7/30/2018
/ Board of Directors ,
Breach of Duty ,
Capital Raising ,
Delaware General Corporation Law ,
Entrepreneurs ,
Fiduciary Duty ,
Investors ,
Liquidation ,
Preferred Shares ,
Share Redemption ,
Shareholders ,
Venture Capital
Venture capital firms and their director designees on portfolio company boards can find themselves stuck between their fiduciary duty to common shareholders and the terms of preferred investment documents. Before any other...more
4/30/2018
/ Board of Directors ,
Breach of Duty ,
Common Stock ,
Conflicts of Interest ,
Fiduciary Duty ,
Mergers ,
Preferred Shares ,
Recapitalization ,
Risk Mitigation ,
Shareholders ,
Stock Redemption ,
Venture Capital
In Kahn v. M&F Worldwide Corp., the Delaware Supreme Court unanimously affirmed the Court of Chancery’s decision that the more deferential business judgment rule standard of review, rather than an entire fairness standard of...more