Issueing additional stock for venture capital ?
Posted by admin on 22 Dec 2008 8:29 am. Filed under Corporations.
mamu
I would like to know how the new stocks can be issued to venture capitalist to raise money. Who can do it?
I am just intended to be the stock holder of the company but I will be raising money through venture capital. So can I issue new stocks? or either director or office has to do it?
I would like to know how the new stocks can be issued to venture capitalist to raise money. Who can do it?
I am just intended to be the stock holder of the company but I will be raising money through venture capital. So can I issue new stocks? or either director or office has to do it?
I am asking this question because to venture capitalist I will be representing the company and at any stage I can’t tell them that I have no authority for something.
One Comment to “Issueing additional stock for venture capital ?”
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On December 25th, 2008 at 12:43 am
The issuance of stock has to be authorized in accordance with the companies organizational documents (by-laws and certificate of incorporation) and the relevant corporations law. Generally speaking, the board of directors of the company has to approve the issuance of stock through a resolution.