You had the idea but not the finances, so you approached a venture capitalist. She invested $100,000 in exchange for a 25% equity stake in your new corporation. You were still the majority shareholder, so her equity share never affected day-to-day operations. As your company began to grow, you partnered…
California stock corporations are owned by their shareholders who then elect directors. Directors, in turn, elect officers who handle a corporation’s day-to-day management. Accordingly, shareholders hold influential positions in a corporation through their voting power. California requires corporations issuing more than one class of shares to designate the classes and/or…