Equity Rights definition: Copy, customize and use instantly
Introduction
The term "Equity Rights" refers to the entitlements and privileges associated with ownership of equity interests in a company, including rights to vote, receive dividends, participate in distributions, and exercise options or warrants. It is essential for defining shareholder rights, ensuring corporate governance, and protecting investor interests.
Below are various examples of how "Equity Rights" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Equity Rights" as shareholder voting rights
This definition ties "Equity Rights" to governance participation.
"Equity Rights" means the entitlement of a shareholder to participate in corporate decision-making through voting on matters requiring shareholder approval.
Definition of "Equity Rights" as dividend entitlement
This definition connects "Equity Rights" to profit distribution.
"Equity Rights" refers to the right of an equity holder to receive dividends or other distributions based on ownership percentage, subject to the company’s dividend policy.
Definition of "Equity Rights" as preemptive rights
This definition links "Equity Rights" to share issuance protection.
"Equity Rights" means the rights granted to existing shareholders to purchase additional shares before they are offered to external investors to maintain their proportional ownership.
Definition of "Equity Rights" as rights under stock option plans
This definition applies "Equity Rights" to employee compensation.
"Equity Rights" refers to the rights of an individual under an equity incentive plan, including stock options, restricted stock, and other equity awards.
Definition of "Equity Rights" as shareholder voting rights
This definition ties "Equity Rights" to governance participation.
"Equity Rights" means the entitlement of a shareholder to participate in corporate decision-making through voting on matters requiring shareholder approval.
Definition of "Equity Rights" as dividend entitlement
This definition connects "Equity Rights" to profit distribution.
"Equity Rights" refers to the right of an equity holder to receive dividends or other distributions based on ownership percentage, subject to the company’s dividend policy.
Definition of "Equity Rights" as preemptive rights
This definition links "Equity Rights" to share issuance protection.
"Equity Rights" means the rights granted to existing shareholders to purchase additional shares before they are offered to external investors to maintain their proportional ownership.
Definition of "Equity Rights" as rights under stock option plans
This definition applies "Equity Rights" to employee compensation.
"Equity Rights" refers to the rights of an individual under an equity incentive plan, including stock options, restricted stock, and other equity awards.
Definition of "Equity Rights" as convertible securities privileges
This definition ties "Equity Rights" to conversion features.
"Equity Rights" means the rights associated with convertible securities, allowing the holder to convert such securities into common or preferred stock under specified conditions.
Definition of "Equity Rights" as liquidation preferences
This definition connects "Equity Rights" to distribution priority.
"Equity Rights" refers to the rights of preferred shareholders to receive a designated payout before common shareholders in the event of liquidation or dissolution.
Definition of "Equity Rights" as stock warrant rights
This definition links "Equity Rights" to future stock purchases.
"Equity Rights" means the rights of a warrant holder to purchase equity securities at a predetermined price within a specified period.
Definition of "Equity Rights" as rights in a joint venture
This definition applies "Equity Rights" to partnership arrangements.
"Equity Rights" refers to the ownership interests, voting rights, and financial entitlements of partners or shareholders in a joint venture.
Definition of "Equity Rights" as lock-up period restrictions
This definition ties "Equity Rights" to restricted share sales.
"Equity Rights" means the limitations on selling or transferring equity securities for a defined period following an IPO, merger, or financing transaction.
Definition of "Equity Rights" as participation rights in distributions
This definition connects "Equity Rights" to revenue sharing.
"Equity Rights" refers to the entitlements of equity holders to receive a portion of a company’s earnings through dividends, profit-sharing arrangements, or other distributions.
Definition of "Equity Rights" as anti-dilution protections
This definition links "Equity Rights" to investor safeguards.
"Equity Rights" means the protection mechanisms ensuring that existing shareholders maintain their proportional ownership when new shares are issued at a lower valuation.
Definition of "Equity Rights" as tag-along rights
This definition applies "Equity Rights" to minority shareholder protections.
"Equity Rights" refers to the rights of minority shareholders to participate in a sale transaction under the same terms as majority shareholders.
Definition of "Equity Rights" as drag-along rights
This definition ties "Equity Rights" to majority control.
"Equity Rights" means the rights granted to majority shareholders to compel minority shareholders to sell their shares in a company sale.
Definition of "Equity Rights" as founder stock rights
This definition connects "Equity Rights" to startup ownership.
"Equity Rights" refers to the special rights granted to company founders, which may include super-voting shares, vesting schedules, and repurchase rights.
Definition of "Equity Rights" as equity compensation rights
This definition links "Equity Rights" to employee incentives.
"Equity Rights" means the entitlements granted under an employee stock ownership plan, including stock options, restricted stock, and stock appreciation rights.
Definition of "Equity Rights" as rights under preferred shares
This definition applies "Equity Rights" to preference shares.
"Equity Rights" refers to the special rights attached to preferred stock, including dividend preferences, redemption options, and liquidation preferences.
Definition of "Equity Rights" as rights under an equity financing agreement
This definition ties "Equity Rights" to capital raising.
"Equity Rights" means the rights granted to investors under an equity financing agreement, including voting, conversion, and liquidity rights.
Definition of "Equity Rights" as ownership rights in private companies
This definition connects "Equity Rights" to non-public entities.
"Equity Rights" refers to the rights of equity holders in a privately held company, including transfer restrictions, buy-sell agreements, and redemption rights.
Definition of "Equity Rights" as SPAC equity rights
This definition links "Equity Rights" to special purpose acquisition companies (SPACs).
"Equity Rights" means the entitlements granted to SPAC investors, including conversion rights, redemption options, and participation in de-SPAC transactions.
Definition of "Equity Rights" as rights in cross-border investments
This definition applies "Equity Rights" to international business.
"Equity Rights" refers to the entitlements of foreign investors in a multinational corporation, including repatriation rights and compliance with local ownership restrictions.
Definition of "Equity Rights" as voting rights in limited liability companies (LLCs)
This definition ties "Equity Rights" to LLC governance.
"Equity Rights" means the rights of LLC members to participate in company decision-making, elect managers, and approve major transactions.
Definition of "Equity Rights" as silent partner rights
This definition connects "Equity Rights" to passive investors.
"Equity Rights" refers to the entitlements of silent partners in a business, including profit-sharing and capital appreciation without operational control.
Definition of "Equity Rights" as redemption rights
This definition links "Equity Rights" to buyback options.
"Equity Rights" means the ability of an investor to require the company to repurchase shares under specified conditions.
Definition of "Equity Rights" as cap table rights
This definition applies "Equity Rights" to equity ownership tracking.
"Equity Rights" refers to the structured representation of ownership stakes, dilution protection, and vesting schedules in a company’s capitalization table.
Definition of "Equity Rights" as rights under an equity clawback provision
This definition ties "Equity Rights" to contractual forfeiture.
"Equity Rights" means the company’s ability to reclaim equity interests upon termination, misconduct, or failure to meet vesting requirements.
Definition of "Equity Rights" as crowdfunding investor rights
This definition connects "Equity Rights" to equity-based crowdfunding.
"Equity Rights" refers to the rights granted to investors in crowdfunding campaigns, including dividend participation, voting, and liquidity preferences.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.