Information Rights
Contractual provisions in investment agreements that grant investors the right to receive regular financial and operational information from the company, including annual budgets, quarterly financial statements, monthly reports, and cap table updates. Information rights ensure that investors, even those without board seats, can monitor their investment and stay informed about the company's performance. These rights are typically negotiated as part of preferred stock purchase agreements in venture financing.
Related Terms
An individual who is granted the right to attend board meetings and receive board materials but does not have voting pow...
Contractual rights that give preferred stockholders (typically investors) the ability to block certain corporate actions...
A class of equity ownership that carries preferential rights over common stock, typically including liquidation preferen...
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