"In a world in which customers, investors and potential talent are increasingly factoring ESG into their decisions around purchasing, investing and job moves, enshrining ESG goals using a golden share mechanism can be seen as a valuable step to demonstrating that your company is serious when it comes to ethics, and dispel any accusations of green-washing."
Writing in Startups Magazine, senior associate Sally Johnston discusses how businesses can implement golden shares to protect their ESG objectives.
Golden shares are shares held by a certain person, which gives them special rights – for example, consent rights over certain decisions which allows a ‘golden shareholder’ to effectively veto certain actions. For instance if a company's articles of association are amended to say that the company’s objects must deliver certain ESG benefits and a certain proportion of profits must go to charity, then the golden shareholder’s consent will be needed to change them.
The full article is available to read on the Startups Magazine website.
Sally is a senior associate in the startups team. She regularly advises startups and growing companies on a range of matters. Whilst Sally’s expertise is advising on fundraising and growth, her knowledge extends to share schemes and incentives, brand protection, key commercial contracts and M&A.
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