Re:Board Members
by solve on Wednesday May 13, 2015 @02:44AM
(#9537213)
No. VCs always get preemption rights, and always refuse to give up their board seats once they get them.
Replying to the OP a few threads up:
> I assume events (key hires, acquisitions, investments) are brought to the board for a vote, and need to pass with a majority.
There's an extremely common founder misconception that board seats are required for investors to be able to have a say in whether acquisitions and investments happen. But it's not true!
The normal pre-emption rights that every investor gets are what's used for these cases. Board seats are not required for this and unrelated to this.
Replying to the OP a few threads up:
> I assume events (key hires, acquisitions, investments) are brought to the board for a vote, and need to pass with a majority.
There's an extremely common founder misconception that board seats are required for investors to be able to have a say in whether acquisitions and investments happen. But it's not true!
The normal pre-emption rights that every investor gets are what's used for these cases. Board seats are not required for this and unrelated to this.