by Nik Erman | Mar 24, 2025 | Business, Contracts, Featured, Law
What is a Profit Reinvestment Clause? This clause specifies: How much profit is reinvested into the business (e.g., 60% reinvested, 40% paid as dividends). What the reinvested funds can be spent on (e.g., R&D, equipment, hiring). How decisions about reinvestment...
by Nik Erman | Feb 24, 2025 | Business, Contracts, Featured, Law
One of the most overlooked yet critical aspects of a shareholders agreement is the inclusion of Good Leaver / Bad Leaver provisions . These clauses address what happens when a shareholder leaves the company—whether in good terms or in bad terms —and how their shares...
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...
by Nik Erman | Feb 17, 2025 | Business, Contracts, Featured, Law
In corporate governance, power dynamics between majority and minority shareholders can sometimes lead to unexpected challenges. While the majority typically holds control over decision-making, there are scenarios where a minority shareholder—or group of minority...
by Nik Erman | Jan 30, 2025 | Business, Contracts, Featured, Law
In the dynamic world of business, small and medium enterprises (SMEs) play a pivotal role in driving economic growth, innovation, and employment. However, as these businesses grow, they often face challenges related to ownership structure, decision-making processes,...
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