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EQUITY PROTECTION INSTRUMENTS IN SHAREHOLDERS' AGREEMENTS

Publication at Faculty of Law |
2023

Abstract

One of the main purposes of shareholders' agreements is to protect minority shareholders and, particularly in the context of venture capital financing, to protect the economic position of investor shareholders. To this end, shareholders' agreements include, among other things, arrangements under which investor shareholders are granted certain preferential rights relating to the distribution of the company's resources to the shareholders or other control rights enabling investors to effectively monitor and influence the management of the company's equity.