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Why Drag-Along Clauses in Shareholders Agreements Are Critical for Startups Raising Capital

Why Drag-Along Clauses in Shareholders Agreements Are Critical for Startups Raising Capital

by Nik Erman | Feb 17, 2025 | Business, Contracts, Featured, Law

When startups seek external funding, they often bring in investors (such as venture capitalists, angel investors, or private equity firms) who acquire minority stakes in the company. These investors typically have different goals and expectations compared to the...
No Interest, Shared Success: How Mudarabah Agreements Revolutionize Ethical Business Financing

No Interest, Shared Success: How Mudarabah Agreements Revolutionize Ethical Business Financing

by Nik Erman | Jan 30, 2025 | Business, Contracts, Featured, Law

The concept of no interest involvement is a cornerstone of Islamic finance and is particularly significant in the context of a Mudarabah agreement. In Islamic economics, the prohibition of interest (known as riba) is based on the belief that money itself should not...
Unlocking Business Potential: The Advantages of Mudarabah Agreements in Ethical and Collaborative Finance

Unlocking Business Potential: The Advantages of Mudarabah Agreements in Ethical and Collaborative Finance

by Nik Erman | Jan 30, 2025 | Business, Contracts, Featured, Law

A Mudarabah agreement is a form of Islamic finance partnership where one party provides capital (the Rabb-ul-Mal or investor) and the other party provides expertise and management (the Mudarib or entrepreneur). The profits are shared according to a pre-agreed ratio,...
Protecting Minority Shareholder Rights: Essential Governance Clauses in a Shareholders Agreement

Protecting Minority Shareholder Rights: Essential Governance Clauses in a Shareholders Agreement

by Nik Erman | Jan 27, 2025 | Business, Contracts, Featured, Law

Governance and decision-making are critical components of a Shareholders Agreement, especially when you are a minority shareholder investing a significant amount of money. These provisions ensure that you have a say in the company’s direction and protect your...
Protecting Your Family Business: Key Shareholder Agreement Provisions

Protecting Your Family Business: Key Shareholder Agreement Provisions

by Nik Erman | Dec 4, 2024 | Business, Contracts, Featured, Law

Family businesses operate within a unique intersection of personal and professional relationships. A well-drafted shareholders agreement acts as a safeguard, maintaining harmony among family members while providing a robust framework for business operations. By...
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