Management Rights

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Home Startup Terms Glossary Management Rights

What are Management Rights?

Management rights are rights that are written into a contract between companies and venture capital funds that allow the funds the legal rights to have significant influence in managing the company. These rights are essential to ensuring that venture capital funds have a say in what goes on in respect to the companies they invest in.

Management Rights Examples

Examples of commonly sought out management rights include:

  • Example 1. Appointing directors to the board
  • Example 2. Receiving quarterly or annual financial reports and audits
  • Example 3. Examining books or other company documents

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