Disclosures
Explain investor rights and governance
Align the PPM with the agreements that define investor rights.
Product documentation · Version 2.0 · Updated October 1, 2026
Start from the documents
Use the operating agreement, partnership agreement, note, or other governing instrument. Identify management authority, voting, amendments, removal, transfers, redemption, information rights, and dissolution provisions that apply.
Explain restrictions accurately
Do not promise routine liquidity if transfers are restricted or require consent. State the actual conditions and limitations. Reconcile the narrative with any side letters or classes that have different economic or voting rights.
Hand the reviewer the source
Provide counsel the governing documents together with the draft. A PPM summary should not contradict the definitive agreement or omit a material limitation. Resolve inconsistencies before any investor receives the package.
Was this article helpful?