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The Legal Side of Entrepreneurship

YoungUpstarts

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.

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Venture Capital Red Flag Checklist 

abovethecrowd.com

Most importantly, there is a reasonable probability that the absence of standard governance guardrails and constraints actually enables reckless behavior. Lastly, in a heated market, investor competition increases which leads to more investors being willing to “take what they can get” when it comes to governance. Theranos) is another.

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What Is a Benefit Corporation?

Up and Running

Method, the popular cleaning products company, is a registered benefit corporation in the state of Delaware. Image via methodhome.com. I recently wrote a post on social enterprise, discussing what it entails, and what some of the legal structure options are for a business when the focus is on a social mission.

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What Are the Rights of Minority Stockholders?

Scott Edward Walker

Because these rights are governed by State law, I will focus on the State of Delaware — where most companies are incorporated. The Delaware statute defines “proper purpose” to mean “a purpose reasonably related to such person’s interest as a stockholder.” 1) Inspection Right. 2) Right to Bring a Derivative Claim.