Shareholders' Agreements · glossary
New shares the company offers for cash when it needs money it cannot borrow or find itself. Starting a round and setting its price both need A Consent and B Consent. Every owner is offered its share, and an owner that does not buy is diluted. Definition: Emergency Equity · Clause 7.5 · Chapter 6
Explained in Chapter 6, Money, of Shareholders' Agreements.
Emergency Equity is new shares issued for cash when the loans are not enough. It starts only if the board, with A Consent and B Consent, decides that the company needs money it cannot find from its own cash or by borrowing. The board then fixes the price of each new share, again with both consents.Read Chapter 6, Money →
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Shares offered for subscription under clause 7.5;Read the definition in the document →
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