Recapturing short-term investments; venture capitalists should maximize their exit rights in good times as well as bad

Article Abstract:

Venture capital investors must make sure of the exit strategies from their investment before committing to it. The possible strategies range from the initial public offering, the classic strategy when the investment is successful, to sale of the venture capitalist's stake or of the whole company, mandatory redemption, exercising the put rights, refinancing and liquidation and finally, to shut-down. The stage of the financing and the relative bargaining power of the parties will help determine the range of exit rights received.

Management, Venture capital, Going public (Securities), Initial public offerings

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Corporate law; electronic proxies

Article Abstract:

More than 1,000 companies gave their stockholders the option of voting online in the 1998 proxy season, and more should follow suit this proxy season. Before instituting electronic proxy distribution or electronic voting, however, matters for a company to consider include federal and state laws, self-regulatory organizations' rules, with the examples of the New York Stock Exchange and Nasdaq, and the company's own internal governance documents.

United States, Laws, regulations and rules, Technology application, Voting rights (Stockholders), Proxy

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Deals using acquirer's share surge

Article Abstract:

Stock exchanges are an increasingly popular mechanism for friendly mergers between public companies, using both fixed value and fixed exchange formulas. Of the 279 such mergers in the past 12 months, 128 acquirers paid in stocks and 57 partly so. The benefits and details of the two methods are described, as are the various mechanisms employed to protect against stockmarket swings, including walk-away and contingent value rights.

Usage, Finance, Acquisitions and mergers, Stock transfer

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