Preferred Stock Rights Determined By Interpretation of Charter
Thoughtworks, Inc. v. SV Investment Partners LLC , (read opinion online here .) In this Chancery Court decision the court interpreted a put (right to redeem) preferred stock which was made part of the Certificate of Incorporation as protection for the risk that an IPO might not be held. The court determined that there was a right to redemption of the preferred shares that would only be limited by “legally available funds.”
