Members voting rights in a syndication

[Ellie Perlman]

I'm currently raising money from investors, and was asked by one of them about the voting rights in case of a sale. This investor is willing to invest $50K, and worried that if there will be someone that will invest say $500K, than his voice will not count in case they are voting an a sale.

When it comes to large deals ($10M and above), do you, as the syndicator, give investors voting rights?

If so - does 1 investor = 1 vote, or do you tie their vote to their relative investment amount?