Glossary · Investor rights
Protective provisions
Clauses that require investor approval — or a class vote — before the company does certain big things: selling the company, issuing new stock, changing the charter, or taking on large debt.
Related: Preferred stock · Term sheet · Board of directors
A bit more nuance▾
- Often called veto rights in conversation; the real text lives in corporate documents.
- They protect investors; founders should know which decisions cannot move at startup speed anymore.
Go deeper▾
Discussion questions▾
- Which protective items are standard in your market vs overreach?
- What decision would you never want blocked by a single small holder?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.