Legal Challenges for Capital Raising without Contribution of Funds

What happens to a shareholder's stake if they do not subscribe to additional shares issued by a company?

What is the primary aim of a capital raise for a company?

When equity becomes less than half of the share capital, a company may raise capital to:

What is one way for existing shareholders to maintain their percentage of participation in a company when new shares are issued?

How does increasing the nominal value of existing shares affect the share capital of a company?

How can companies raise capital by increasing the nominal value of existing shares?

What is a way for partners to provide liquidity to a company during a capital raise?

In a capital raise involving the issuance of new shares, who may subscribe to the newly issued shares?

What is a method of increasing the capital of a company where tangible and intangible goods are provided by shareholders?

In the context of a company raising capital, what does the term 'dilution' refer to?

How can existing shareholders be given priority for purchasing new shares during a capital raise?

If a company's articles of association require it, new shareholders in a capital raise may need approval from:

Who is a director in a corporation?

What is the role of officers in a corporation?

What is the main function of a board of directors (BOD) in a corporation?

Where do officers derive their powers from in a corporation?

What distinguishes directors from officers in a corporation?

Who is responsible for making major business and policy decisions in a corporation?

What majority is typically required for passing a special resolution to decide on capital raising?

In what scenario does a capital increase require a unanimous decision?

What information should be stated in a special resolution for capital raising?

Before a capital increase in cash, what condition must be met regarding the initial share capital?

What is one of the formalities required for a company to raise capital?

Besides passing a special resolution, what other step is necessary for capital raising?

What are the 3 standards applied to directors/officers to determine compliance with the Business Judgment Rule?

In Smith v. Van Gorkom case, why did the court find the director grossly negligent?

What is a limitation on the powers of directors mentioned in the text?

What action by directors is protected by the Business Judgment Rule if there is a conscious decision involved?

Which of the following is NOT one of the 3 standards applied to directors/officers to determine compliance with the Business Judgment Rule?

What must directors do to comply with the standard of care under the Business Judgment Rule?