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Regulation A - Keeping Control of Your Company

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http://www.TheSecuritiesAttorneys.com Reg A – Keeping Control of Your Company
It is important to founders to keep control of their companies. In fact, we find that most companies do better in the hands of their founders and not in the hands of venture capitalists or other outsiders.

Reg A gives small, growing companies a way to raise money without of venture capitalists who may demand control. You can use various ways to keep control after going pubic using Reg A or other types of offerings. You can have a preferred stock or a class of common stock with super voting rights. You can have a class of stock that elects a majority of the board of directors. You will also want anti-takeover provisions like staggered election of directors or poison pill preferred stock. Many states also have laws to prevent green mailing and unfair takeovers.

Venture capitalists may ask for full control or veto power over key decisions. Public investors do not expect to get control. You have more discretion to set the price when selling stock to public investors.

www.TheSecuritiesAttorneys.com Want to know more? – email me at John.Lux@ Securities-Law.info (240) 200-4529 John E. Lux was in the top 5% of authors on Slideshare in 2014 and has been quoted by Bloomberg as an expert on reverse mergers

This is part of a series on Regulation A, so subscribe here for more and to learn more, go to www. TheSecuritiesAttorneys.com and get a free copy of our book “How to Go Public”
Disclaimer This is not legal or investment advice of any kind Seek competent advice from qualified attorneys and investment bankers Your situation may vary The more you know about finance and business, the more you can profit

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Regulation A - Keeping Control of Your Company

  1. 1. www.TheSecuritiesAttorneys.com Reg A – Keeping Control of Your Company
  2. 2. www.TheSecuritiesAttorneys.com It is important to founders to keep control of their companies
  3. 3. In fact, we find that most companies do better in the hands of their founders and not in the hands of venture capitalists or other outsiders
  4. 4. Reg A gives small, growing companies a way to raise money without of venture capitalists who may demand control
  5. 5. You can use various ways to keep control after going pubic using Reg A or other type of offerings
  6. 6. You can have a preferred stock or a class of common stock with super voting rights
  7. 7. You can have a class of stock that elects a majority of the board of directors
  8. 8. You will also want anti-takeover provisions like staggered election of directors or poison pill preferred stock
  9. 9. Many states also have laws to prevent green mailing and unfair takeovers
  10. 10. Venture capitalists may ask for full control or veto power over key decisions
  11. 11. Public investors do not expect to get control
  12. 12. You have more discretion to set the price when selling stock to public investors
  13. 13. www.TheSecuritiesAttorneys.com This is part of a series on Regulation A, so subscribe here for more and to learn more, go to www. TheSecuritiesAttorneys.com and get a free copy of our book “How to Go Public”
  14. 14. www.TheSecuritiesAttorneys.com  Want to know more? – email me at John.Lux@ Securities- Law.info  (240) 200-4529
  15. 15. John E. Lux was in the top 5% of authors on Slideshare in 2014 and has been quoted by Bloomberg as an expert on reverse mergers
  16. 16. Disclaimer  This is not legal or investment advice of any kind  Seek competent advice from qualified attorneys and investment bankers  Your situation may vary  The more you know about finance and business, the more you can profit

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