start up company

[anonymous-user]

a quick question

because of some work I have done in the past, I am being offered a percentage of a start up company. It is very small, insultingly small infact, but I am not really in a position to negotiate the size of the share I am offered.

It is pretty unlikely IMO that the value of this shareholding will ever amount to much, but I would obviously like to maximise my position, just in case it does.

the company will, I am almost certain, seek to raise cash by selling equity.

is there a name for shares that can't be sold off - i.e. say the company sold a 50 % shareholding in return for cash... is there anyway I can ensure my shareholding remains a constant size (i.e. say i own 1 %... can i make it so investors can only purchase equity from the other 99 % and not 'my' 1%).

I hope this makes sense, I am not really business minded.

[trickywoo]

If its a company limited by shares (which sounds to be the case from your description) the number of issued shares will be the same from issue date, its just the price that will change per supply / demand.

[anonymous-user]

such things are covered in the shareholders agreement

'no new shares can be issued without the consent of you' is the gist of the clause you want to see in there

[qureshia]

The term is "Non-dilution Clause"

If more shares are issued then you will be issued more to make you holding back up to the orgiinal percentage.