Shade word in the Investor Rights Agreement in a few clicks

Aug 6th, 2022
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How to shade word in the Investor Rights Agreement

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hi Im Kelly Kesner here with another session of investors Watchdog University Im here with Pat Huddleston the founder of investors Watchdog and today were going to talk about investor rights Pat would you tell people a little bit about what they need to know about investor rights absolutely Kelly first of all you need to know that you have them far too many people think that uh the investment world comes with risk and it certainly does but because of that fact that if they suffer a loss they just have to take it that theres no level or standard of care no no substantive rights that they uh can expect to be fulfilled but thats not true so among the things that people can expect from the Securities industry among the rights that you have as an investor um is the right to just basic fairness and good faith we see this violated a lot of times in what we call churning cases which well talk about in more detail um in another session um you have a right to know all the material facts ab

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One type of registration rightsknown as demand rightsallows investors to force a company to go public. Piggyback rights, another type, allow investors to have their shares included in a liquidity event.
An investment agreement generally covers the terms of the investment by the investor into the company. It documents a one-off transaction between the investor and the company. In contrast, a shareholders agreement governs the rights and responsibilities of all the shareholders and the company going forwards.
Investors can utilize the Investor Rights Agreement to prevent the company from issuing dividends that are not paid out in full. Investors may also use the Investor Rights Agreement to prevent the company from taking actions that would dilute the value of their investment in the business.
Investor agreements generally cover any transaction that gives other people or businesses ownership interest in the company. This could be of interest now or into the future and could be in exchange for anything of value such as cash, labor, an asset, and more.
Dec 8, 2023. By Matt Grazier and Tim Sharkey. An investor rights agreement (IRA) grants certain rights to and outlines obligations for companies and their investors. We highlight the main topics and best practices for drafting an IRA.
Investors have the right to clear, accurate and timely account statements from securities brokerage firms and investment advisors, including detailed information about transactions. Investors have the right to clear information about costs, charges and fees.

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