If there’s one thing I’ve learned from years of working with founders, it’s that protecting your position isn’t a one-and-done deal. The mechanisms that keep you safely in the driver’s seat during your seed round might be woefully inadequate by the time you’re raising a Series C. Let me walk you through how founder protection
Corporate Governance
Safeguarding Vision: The Critical Importance of Founder Protection Clauses
By Carl D. Neff on
I’ve seen it happen time and again in the high-stakes world of venture capital and startup growth—brilliant founders suddenly finding themselves pushed to the sidelines of their own companies. One minute you’re the visionary CEO, the next you’re being shown the door by the very investors you brought in. As funding rounds pile up and…
The Delaware Court of Chancery Holds Amendment of LLC Agreement via Merger Enforceable
By Carl D. Neff on
On August 30, 2024, the Delaware Court of Chancery in Campus Eye Management Holdings, LLC v. E. Bruce DiDonato, OD, C.A. 2024-0121-LWW (Del. Ch. August 30, 2024), affirmed an amendment to a limited liability company agreement (an “LLC Agreement”) that was adopted by merger, notwithstanding a different vote was required to adopt the amendment…
Moelis and its Aftermath: Recent Case Law and Statutory Developments Addressing the Ability of Stockholders to Manage Corporations through Stockholder Agreements
By Carl D. Neff on
This article was written by Jim Rosenbluth and Carl Neff of Pierson Ferdinand LLP.
Delaware has long maintained its status as the mecca for U.S. corporations, with over 50% of all publicly listed corporations incorporated there. Devoted exclusively to the adjudication of business disputes and known for having developed a widely cited and extensive body…