What happens I don't raise the targeted funds for my startup?
If the minimum funding is not met then there are options for how to proceed based on the situation:
• Adaption of original business plan to function with less funding
• Extending the financing round
• Closing of the finance round with no funds transferred
How do I determine the nationality of a joint stock company?
A joint stock company formed and duly registered in Lebanon is automatically considered Lebanese even if the majority of shareholders are not Lebanese.
How is a term sheet structured?
A term sheet is divided into sections:
• The first section contains basic “Offering Terms:” identity of the investor(s), amount offered, price per share, pre-and-post-money valuation, and capitalization.
• Other sections include the key terms in the corporate charter, the investors’ rights agreement, the right of first refusal, and voting agreement.
What are guarantee shares?
Each board member should hold a minimum number of shares mentioned in the articles of association (i.e. the guarantee shares) to guarantee their board memberships. Such shares are deposited in the company’s fund to ensure a good management of the company and should remain nominal and may not be put into circulation.
Guarantee shares should remain blocked as long as the members of the board are performing their functions, and until acquitted upon approval of the company’s budget at the end of the financial year of the start date of their functions.
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