Who takes decisions associated with ownership (e.g. voting rights, rights issues)?
Even if you work out a way to do it, or satisfy yourselves that these points are not a challenge for your situation, there remain a number of very practical, commercial points to consider. Independent of the technical reasons against taking shares, it is far from clear that accepting shares/options would be a good idea. • Shares may be illiquid and having traded some cash consideration for share equity any beneficiary (inventor, university) may end up with an asset which is (i) unsellable or (ii) is worth less upon sale than the cash on offer. • The cash considerations in a licence may well include upfront fees, milestones which generate cash for the beneficiaries relatively early. Shares are likely to be unsellable for quite some time, possibly delaying the time before the beneficiaries see any cash return. • Conflicts of interest may arise from individuals benefiting from future share price increases. As a shareholder, the licensee may encourage the university, department head of inv
Related Questions
- Was there any change in my proportional ownership interest in Piedmont, my voting rights, my right to receive dividends, or the total amount of my dividends as a result of the reverse stock split?
- As an affiliate of the TEIP risk pool, do I have any ownership in the pool, voting rights or ability to serve on the AMERIND Board of Directors?
- What are the voting rights associated with each class of stock?
