Hi
I raised funds for my startup as CCD last year. I now have decided to not proceed with the idea and have partial funds remaining which I would like to return to my investors.
I have been suggested two options:
1. Conversion to CCPS at a much reduced valuation, buy back at nominal value and return funds by other means (professional fees etc)
2. Amend the CCD agreement to include a voluntary termination with partial funds refund clause.
What is the best way to go about this?
To close your CCD agreement:
Get Investor Consent: Draft a mutual termination or amendment agreement signed by all investors.
Formalize via Corporate Law: Ensure your Board and Shareholders pass the necessary resolutions.
Avoid Informal Channels: Never use "professional fees" to mask a capital refund; keep the transaction transparent to avoid legal repercussions.
Professional Review: Consult a Company Secretary to handle the required filings (e.g., MGT-14) to formally update the company’s status with the RoC.
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