Deep Dive Governance

Now that you understand the structural foundations, let's explore how governance works in steward-ownership-aligned financing. This chapter guides you through the nuanced relationship between entrepreneurs and investors, focusing on how rights and responsibilities can be distributed.

We'll examine different approaches to investor involvement beyond conventional voting rights, from consultation mechanisms to specific provision rights. You'll discover how steward-owners can maintain entrepreneurial control while involving investors who enable and support your business and its purpose and long term orientation.

By the end of this subchapter, you'll understand the different ways to design governance structures around steward-ownership-aligned investments. 

Short Summary

• Entrepreneurial control in steward-ownership-aligned financing remains with the entrepreneurs, the steward-owners taking on active responsibility for the company.
• Investors in steward-owned businesses do not take over the company’s steering wheel but are considered enablers and important partners, with specific rights for involvement tied to that role.
• There are multiple ways beyond voting rights to involve investors in decision-making, from consent or veto rights to consultation, information or interference rights.
• Understanding the limits of how much power you want to give away and why the investor wants control – and in which scenarios – is relevant for finding a fitting governance and provision rights for the investment.