Investors that decide to convert to a share in the business, are bundled in a single legal entity, a so called Stichting Administratiekantoor (STAK). This STAK has a direct shareholding in the business and will be governed by the entrepreneur. The STAK will issue certificates without voting rights. The board is obliged to make sure that all economic rights of the crowdfunders will be executed. For example once a significant part of the share is sold, then a equal part of the STAK should be sold pro rata, to make sure crowdfunders also benefit from this (‘tag along right’). This creates an ‘exit’, resulting in a return for crowdfunders. The terms will be included in the terms of administration of the STAK, and a shareholders which is being signed by de entrepreneur, the STAK and any other shareholders.
Via which legal structure will investors convert to shares in a business?
