Risk, Failure & Governance

Legal process for insolvent entities to resolve debts.

Formal meeting of the board to make key decisions.

Risk of breaking laws/regulations.

A safeguard to prevent or detect issues.

Legal termination of an entity.

Clause forcing minority holders to join a sale approved by majority.

Risk of failing to deliver due to team/process constraints.

Structures and processes for decision-making and oversight.

Inability to pay debts when due.

Processes ensuring reliable operations and reporting.

Risk tied to dependence on a specific individual.

Winding down a company and distributing assets.

Risk that market demand changes or is smaller than expected.

Written record of decisions and discussions in meetings.

Actions taken to reduce risk impact or likelihood.

Risk from internal processes, people, or systems.

Investor rights requiring consent for certain actions.

Restructuring equity/financing to reset ownership or terms.

Risk of damaging public trust and brand.

Identifying and reducing risks systematically.

A documented list of risks, owners, and mitigations.

Stopping operations, often before dissolution.

Clause allowing minority holders to join a sale on the same terms.

Rights to vote on company matters.

Order of payouts in an exit (preferences first, then common).

Formal process of closing a company.