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Risk-Seeking Corporate Governance

Reynolds Holding

Startup founders are retaining more equity and control over their companies, and contrary to past practice, some VCs say they will never remove a founder. At the same time, startups are taking unprecedented risks – defying regulators, growing in unsustainable ways, and racking up billion-dollar losses.

Finance 45
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Compulsion No, Opportunity Yes in the Delaware Law of Externalities

Reynolds Holding

Musk [6] looked beyond a bright-line test of equity ownership percentage in deciding whether a CEO had control; and W. The corporation and its shareholders necessarily refer to shareholders in the single firm model, and no one would think otherwise, much as a fish has no concept of an environment other than water. [10]