Emerald Law LLC

Emerald Law LLC Emerald Law is a law firm in Singapore. We offer specialised legal solutions at affordable rates. Do

09/08/2026

What happens when founders give away too much equity too early?

Giving away too much equity early can create problems for a founder.

One is the potential loss of control. If the founder no longer has majority voting rights, they may lose control over important decisions, including the composition of the board.

Another is motivation. If a founder becomes too diluted and no longer feels ownership of the business, it may affect their motivation and commitment to the company.

Understanding how much equity to give up — and when — is an important consideration when raising funds.

Disclaimer:
The information contained within this website contains general information about our lawyers, Law Firm and procedures and is not intended to constitute legal advice. Any person viewing or receiving information from this Website should not act or refrain from acting on the basis of any such information without first seeking appropriate legal advice. Please consult a lawyer for specific review of your case and advise.

Contact Us:
3 Shenton Way, #11-10 Shenton House, Singapore 068805
Tel: +65 8182 2380

06/08/2026

How does a non-dilution clause protect investors?

A non-dilution clause is intended to protect investors if the company's valuation falls after they invest.

For example, if a future fundraising round takes place at a lower valuation, the clause may allow the investor to receive additional shares so that the drop in valuation does not unfairly reduce the value of their investment.

While these clauses are often seen as investor-friendly, they can also help build confidence during fundraising by offering investors protection if the company does not perform as expected.

Disclaimer:
The information contained within this website contains general information about our lawyers, Law Firm and procedures and is not intended to constitute legal advice. Any person viewing or receiving information from this Website should not act or refrain from acting on the basis of any such information without first seeking appropriate legal advice. Please consult a lawyer for specific review of your case and advise.

Contact Us:
3 Shenton Way, #11-10 Shenton House, Singapore 068805
Tel: +65 8182 2380

26/07/2026

What is a non-dilution clause, and why does it matter?

A non-dilution clause is designed to protect an investor's ownership if certain agreed conditions are not met after they invest.

For example, if a company is valued based on expected growth but later performs below agreed targets, the investor may have the right to revisit the valuation or receive additional protections, depending on the terms of the agreement.

Because these clauses can significantly affect ownership and future fundraising, it is important to understand exactly how they operate before signing any investment agreement.

Disclaimer:
The information contained within this website contains general information about our lawyers, Law Firm and procedures and is not intended to constitute legal advice. Any person viewing or receiving information from this Website should not act or refrain from acting on the basis of any such information without first seeking appropriate legal advice. Please consult a lawyer for specific review of your case and advise.

Contact Us:
3 Shenton Way, #11-10 Shenton House, Singapore 068805
Tel: +65 8182 2380

25/07/2026

Is it riskier to raise money from family and friends or from professional investors?

Both come with different risks.

When raising funds from family and friends, it is important to be honest and transparent about the risks involved. Every business carries the possibility of failure, and clear expectations from the outset can help protect relationships.

Professional investors, on the other hand, may negotiate for additional protections, such as performance targets or greater rights if the business does not meet agreed milestones.

Ultimately, the key is understanding the risks and managing expectations before any investment is made.

Disclaimer:
The information contained within this website contains general information about our lawyers, Law Firm and procedures and is not intended to constitute legal advice. Any person viewing or receiving information from this Website should not act or refrain from acting on the basis of any such information without first seeking appropriate legal advice. Please consult a lawyer for specific review of your case and advise.

Contact Us:
3 Shenton Way, #11-10 Shenton House, Singapore 068805
Tel: +65 8182 2380

20/07/2026

What is the earliest sign that a shareholder relationship is breaking down?

One of the earliest warning signs is when shareholders stop acting in the best interests of the company and begin prioritising their own personal interests instead.

Poor communication, constant disagreements, or a complete breakdown in communication can also indicate that the relationship is deteriorating. Left unresolved, these issues can develop into more serious shareholder disputes.

Identifying these warning signs early can help businesses address problems before they escalate.

Disclaimer:
The information contained within this website contains general information about our lawyers, Law Firm and procedures and is not intended to constitute legal advice. Any person viewing or receiving information from this Website should not act or refrain from acting on the basis of any such information without first seeking appropriate legal advice. Please consult a lawyer for specific review of your case and advise.

Contact Us:
3 Shenton Way, #11-10 Shenton House, Singapore 068805
Tel: +65 8182 2380

18/07/2026

Are minority shareholders protected under the law?

Yes. While majority shareholders generally have greater control over the company, minority shareholders are still protected by the law.

For example, the majority cannot unfairly oppress the minority or run the company solely for their own benefit. If this happens, the minority shareholder may have legal remedies available.

The extent of those protections will depend on the facts of each case and the company's governing documents.

Disclaimer:
The information contained within this website contains general information about our lawyers, Law Firm and procedures and is not intended to constitute legal advice. Any person viewing or receiving information from this Website should not act or refrain from acting on the basis of any such information without first seeking appropriate legal advice. Please consult a lawyer for specific review of your case and advise.

Contact Us:
3 Shenton Way, #11-10 Shenton House, Singapore 068805
Tel: +65 8182 2380

14/07/2026

Who has more power in a company: the directors or the shareholders?

Generally, shareholders hold the ultimate power because they appoint the directors and, if they have the required voting control, can remove them. While directors manage the company's day-to-day affairs, they derive their authority from the shareholders.

In many small and medium-sized businesses, it is also common for the shareholders to be the directors. In larger companies, however, professionally appointed or independent directors may also be part of the board.

Disclaimer:
The information contained within this website contains general information about our lawyers, Law Firm and procedures and is not intended to constitute legal advice. Any person viewing or receiving information from this Website should not act or refrain from acting on the basis of any such information without first seeking appropriate legal advice. Please consult a lawyer for specific review of your case and advise.

Contact Us:
3 Shenton Way, #11-10 Shenton House, Singapore 068805
Tel: +65 8182 2380

13/07/2026

Who has more power in a company: the directors or the shareholders?

Generally, shareholders hold the ultimate power because they appoint—and can remove—the directors. While directors manage the day-to-day affairs of the company, they are ultimately accountable to the shareholders.

In many small and medium-sized businesses, the majority shareholder is also a director. It is also common for all shareholders to serve as directors, particularly in closely held companies.

Disclaimer:
The information contained within this website contains general information about our lawyers, Law Firm and procedures and is not intended to constitute legal advice. Any person viewing or receiving information from this Website should not act or refrain from acting on the basis of any such information without first seeking appropriate legal advice. Please consult a lawyer for specific review of your case and advise.

Contact Us:
3 Shenton Way, #11-10 Shenton House, Singapore 068805
Tel: +65 8182 2380

26/06/2026

What if shareholders disagree? Does it always lead to a dispute?

Not necessarily. Disagreements between shareholders are common and can arise over business decisions, strategy, compensation, or future plans.

The key is how those disagreements are managed. Open communication, planning, and a willingness to compromise can often prevent a disagreement from escalating into a full-blown shareholder dispute.

Having clear expectations and alignment from the outset can go a long way in preserving both the business and the working relationship.

Disclaimer:
The information contained within this website contains general information about our lawyers, Law Firm and procedures and is not intended to constitute legal advice. Any person viewing or receiving information from this Website should not act or refrain from acting on the basis of any such information without first seeking appropriate legal advice. Please consult a lawyer for specific review of your case and advise.

Contact Us:
3 Shenton Way, #11-10 Shenton House, Singapore 068805
Tel: +65 8182 2380

Address

3 Shenton Way, Shenton House #11/10
Singapore
068805

Opening Hours

Monday 09:30 - 18:30
Tuesday 09:00 - 18:30
Wednesday 09:00 - 18:30
Thursday 09:30 - 18:30
Friday 09:30 - 18:30

Telephone

+6581822380

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