Power and control: how one entrepreneur succeeded in keeping 51 percent.

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An entrepreneur can retain control of a company while attracting investors by issuing two classes of stock. The entrepreneur in question wanted to give 25% of the company to the first investor and 28% to other investors, but the addition of his controlling share of 51% would have brought the total to 104%. Through the issue of both Class A stock, which is normal common stock, and Class B stock, which confers control rather than economic interest, the entrepreneur can work around the situation.

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Power and control: how one entrepreneur succeeded in keeping 51 percent.

A friend I'll call Jeff has an opportunity before him that entrepreneurs dream about -- but unfortunately, it's accompanied by a nightmare of a problem. Jeff has obtained the world rights to a patent that represents a major breakthro...

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