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.
Articles in this section
- What are the rights of investors once they have a share in the business (A certificate in the STAK)?
- Via which legal structure will investors convert to shares in a business?
- When I want to invest in a business, can I decide if I want to invest via a convertible loan, or invest via straight equity?
- What happens when a business I have invested in does not reach the set goal amount for the crowdfunding campaign?
- What happens when at the end of the duration of the loan, no follow-up investor invested and hence no conversion moment occurred?
- As an investor in a convertible loan, can I decide whether or not to convert my investment to shares in the business?
- How is the interest rate for the convertible loan set?
- What is the duration of a convertible loan
- When will I receive interest on my investment in a convertible loan?
- How much interest will I receive when investing in a convertible loan?