Sometimes, if a company has taken investment from a third party, they might find that they cannot take certain actions without the consent of the investor. For example, a company might need to secure consent from one or more investors before amending articles of association, issuing more shares or entering into high value contracts.
The Vestd platform allows you to choose “must sign shareholders'' for these sorts of matters. This will prevent shareholder resolutions from passing unless the signature of the specified shareholder is obtained. Many investors are satisfied with this as a mode of investor consent.
Others may request that separate investor consent documents be used which they will sign and return - as per our example. This document will usually make reference to where the consent rights are found (often in the articles of association and/or documents such as shareholder agreements) and will list the consent matters taking place.
It is important to note that if a separate investor consent document is used, this will not count as a signature towards the pass rate for shareholder resolution. The resolution will still need to be signed by the requisite percentages once the investor consent has been passed.
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Our team, content and app can help you make informed decisions. This guidance and support should not be considered 'legal or financial advice'. The documents provided on this page are examples only and are used at your own risk.