Supermajority Voting Provision
What is a Supermajority Voting Provision? A supermajority voting provision, an amendment to a company’s corporate charter, is a provision that states that certain corporate actions require much more than a mere majority, typically 67%-90%, approval from its shareholders to pass. In other words, a supermajority voting provision requires greater than a majority shareholder approval...
Proxy Fight
What is a Proxy Fight? A proxy fight, also known as a proxy contest or proxy battle, refers to a situation in which a group of shareholders in a company joins forces in an attempt to oppose and vote out the current management or board of directors. In other words, a proxy fight is a...
Overnight Rate
What is the Overnight Rate? The overnight rate refers to the interest rate that depository institutions (e.g., banks or credit unions) charge each other for overnight lending. Note that the overnight rate is called something different in different countries. For example, in the United States, it is known as the Federal Funds rate, while in...
Capital Note
What is a Capital Note? A capital note is a short-term debt instrument (security) mainly issued by a corporation to pay off short-term obligations that are due in less than one fiscal year. Since capital notes are unsecured fixed-income securities, an investor bears a high level of risk from buying the notes. Capital noteholders are...
Convertible Note
What is a Convertible Note? A convertible note refers to a short-term debt instrument (security) that can be converted into equity (ownership portion in a company). Convertible notes are often used by seed investors who invest in startups. They are structured as loans to convert them to an equity stake in the company in the...
