A Delaware Case With Lessons For VC Firms And Founders
By Matthew Rifino and Philip Amoa (June 22, 2017, 5:58 PM EDT) -- Venture capital firms and founders of companies should take note of a recent important ruling from the Delaware Court of Chancery. In a case of first impression, the court rejected a venture capital firm's effort to employ Section 204 of the Delaware General Corporation Law to ratify an amendment to the company's charter that would have forced the founder out of the company. While many companies use the model legal documents from The National Venture Capital Association, this ruling highlights the need for both sides to carefully negotiate the amendment provisions that are commonly used in the NVCA forms — specifically the voting agreements — which establish the parties' roles in managing the company's future....
Law360 is on it, so you are, too.
A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.
