Registration fees are displayed in the form of either “piggyback” or “request” (“Piggyback” or “request.” Piggyback rights allow investors to include their shares in a registration currently in the planning phase of the business. Piggyback rights are generally not a problem for a company. The copyright is the nature of the registration fees described in the previous sections, and these may be controversial for the reasons examined. Unless there are clear and compelling reasons to initiate an IPO process, the founders and key players will reject the exercise of application rights. Registration fees can be categorized into two main categories: claim rights and piggyback rights. Registration fees are limited to certain periods during which the value of the preferred shares is three to five times the purchase price and a total value of the issue. With regard to the negotiation of registration fees, some points are relatively standard. For example, the Company generally does not agree to register convertible preferred shares, convertible bonds or other common share purchase rights. Only common shares are registered, so all other rights should be converted to or exercised for the registration. Other issues could be more controversial, such as the number of claims registrations an investor can initiate and whether shareholders can exercise their rights.
Investors are often inclined to seek unlimited and frequent listings of so many securities as desired, while companies will struggle to impose certain restrictions. As a general rule, there are 2 declarations of need and these can usually only be carried out 5 years after a first investment cycle. Other bargaining points could be the minimum size of one dollar for the registration of the application and the question of whether the company should make the “best” efforts or “commercially reasonable” efforts to obtain registration (investors often seek the first). In addition to the requirement for the company to register, investors can also transfer the costs of registration to the company. The cost of this trial, for example. B, the legal fees, is incredibly high. It is therefore advantageous for investors to avoid costs.