Glossary · People and paperwork
In short
These are extra powers given to certain shareholders, letting them control decisions disproportionately. You need to understand who holds them, as they can impact your control post-acquisition.
In a stock purchase, existing shareholders might have special voting rights that give them more influence than their ownership percentage suggests. This can complicate governance post-acquisition, especially if the seller retains a minority stake. Always review the corporate bylaws and shareholder agreements to identify any such rights and how they transfer or are extinguished.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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