Negative Control Provisions

Negative control provisions give minority shareholders the ability to veto or block specific corporate actions, such as mergers, asset sales, or changes in corporate governance. These provisions protect minority interests by requiring their consent for critical decisions. Negative control is common in private equity and venture capital agreements, allowing minority investors to safeguard their stake in the company while balancing majority control.

• Allows minority shareholders to block certain decisions.
• Protects minority interests in major corporate actions.
• Common in private equity and venture capital agreements.
• Helps balance control between majority and minority stakeholders.