Term Sheet: Voting Rights
Posted on 07. Jul, 2008 by squareroots in Preferred Stock Rights
Originally posted on Feld Thoughts “Term Sheet: Voting Rights and Employee Pool” by Brad Feld, reposted with permission.
“Voting Rights: The Series A Preferred will vote together with the Common Stock and not as a separate class except as specifically provided herein or as otherwise required by law. The Common Stock may be increased or decreased by the vote of holders of a majority of the Common Stock and Series A Preferred voting together on an as if converted basis, and without a separate class vote. Each share of Series A Preferred shall have a number of votes equal to the number of shares of Common Stock then issuable upon conversion of such share of Series A Preferred.”
Most of the time voting rights are simply an “FYI” section as all the heavy rights are contained in other sections such as the protective provisions.
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