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Reg A – Keeping Control of

Your Company

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It is important to founders to keep control of their

companies

In fact, we find that most companies do better in the hands of their founders

and not in the hands of venture

capitalists or other outsiders

Reg A gives small, growing companies

a way to raise money without of venture capitalists who may demand

control

You can use

various ways to keep control after going

pubic using Reg A or other type

of offerings

You can have a preferred stock or

a class of common stock

with super voting rights

You can have a class of stock that elects a majority of the board of

directors

You will also want anti-takeover

provisions like staggered election

of directors or poison pill

preferred stock

Many states also have laws to prevent green mailing and

unfair takeovers

Venture capitalists may ask for full control or veto power over key

decisions

Public investors do not expect to get

control

You have more discretion to set the price when selling stock to

public investors

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This is part of a series on Regulation A, so subscribe here for more and

to learn more, go to www. TheSecuritiesAttorneys.com

and get a free copy of our book

“How to Go Public”

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Want to know more? – email me at John.Lux@ Securities-Law.info

(240) 200-4529

John E. Lux was in

the top 5% of authors on

Slideshare in 2014 and has

been quoted by Bloomberg as an expert on reverse

mergers

Disclaimer

This is not legal or investment advice of any kind

Seek competent advice from qualified attorneys and investment bankers

Your situation may vary

The more you know about finance and business, the more you can profit