Payment Account
A European or UK payment account with a prudently chosen financial institution is an investment. An investment in convenience, security, reputation. Below you will find the advantages of a European or UK account.
Recommendations
Explanation There are a number of issues that affect GP when it holds listed (quoted) investments. Dealing in such investments will often be subject to additional regulation (such as prohibitions on insider dealing and market abuse). The GP may also need to consider the impact on the market of its
Recommendations
Explanation Situations where funds managed by the same GP are transacting between themselves inevitably lead to conflicts of interest as each vehicle may have different investors and therefore different interests. Such conflicts are typically difficult to resolve and therefore in most circumstances are unlikely to be acceptable to LPs. That
Recommendations
Explanation A GP’s obligation is to seek the best returns from an investment for the fund and the GP must consider opportunities to effect non-cash disposals in light of this. It may be that, for example, there is no cash purchaser for an investment, or that a cash price
Recommendations
Explanation A purchaser of a portfolio company may seek a range of warranties and indemnities from the fund. Negotiation over these will invariably be a key issue for the GP when disposing of an investment. During negotiations, the GP must consider the risks and detriment to the fund in giving
Recommendations
Explanation Since the decision to exit is a judgment call, it is important that the decision-making process involves GP in the same way as it is the original investment. Executive experience is needed to evaluate the risks and rewards of the decision. If co-investors from the fund are involved, this
Recommendations
Explanation The obligations of a fund's GP and LPs to each other, portfolio companies, stakeholders and the public at large are fundamentally the same as for other types of private equity investments. The difference lies in the greater likelihood that the actions of the GP will affect stakeholders
Recommendations
Explanation Determining the right time to sell an investment is a judgement call for GP. Any decision to dispose of an investment involves a comparison of the current value of an investment, its potential future value and the opportunities to realise that value in the future. In making this consideration,
Explanation Unfortunately, not all investments are successful, and while it may not be possible to salvage an investment in a portfolio company with an underlying structural problem, it may be possible to turn around a poor performance record or preserve the value of an investment by * Meeting with the portfolio
Recommendations
Explanation It may be necessary or desirable to make follow-on investments in a portfolio company (e.g., for the fund expansion plans or for the refinance a poorly performing portfolio company). The ability to make a follow-on investment in a successful portfolio company may create a conflict of interest if
Legal
The right to represent the company is called “procuration”. It is a special authorisation which gives a person (Procurator) the right to represent the company in all transactions related to economic activities.
Recommendations
Explanation The structure and compensation of portfolio company employees and management should induce excellent long-term performance, reward sustainable financial and non-financial results, and ethical behaviour. Balancing compensation in the context of the particular industry, the expertise and contribution of the individual, and the long-term needs of the company are important
Recommendations
Explanation An overriding duty of loyalty to the company applies to every director, whether executive or non-executive and whether or not appointed by a particular shareholder, although the precise legal duties vary according to the type of company and jurisdiction. A director is expected to devote as much time and
Recommendations
Explanation Regardless of the type of appointment, directors do not serve the interests of any particular shareholder, but act in the best interests of the portfolio company. The position of a director is a fiduciary one. A director does not act as an agent or advocate of the board that
Recommendations
Explanation Many skills are applicable to become a board member. In particular, the company may need directors with industry experience, legal, corporate finance or accounting experience, or general management experience relevant to the company and/or the sector and region in which it operates. All of these skills, plus the
Corporate Services
Registering Company in Estonia, Requirements & Benefits, Types and Forms of Estonian Companies OÜ, FIE, AS, UÜ, LP, Reporting Forms, Fees for Corporate Services.