Anti Dilution Issues and Equity Injection
Another advantage of a limited liability company is the equity injection by having variation in rights and privileges of the shareholders in a kind of share capital or calss or classes therein may include the difference in voting rights, voting rights disproportionate to the paid-up value of the shares held, voting rights for specific purposes only, no voting rights at all, different rights for entitlement of dividend or such other rights as the member may determine through special resolution.
The Startups are never recommended to make a special purpose vehicle for one particular venture with a particular set of people. However, if a startup intends to form multiple ventures with the same set of people it is always recommended to make a venture capital company.
