# Protective provisions

A list of decisions the company cannot make without investor consent.

This is how a minority holder keeps a veto without holding a majority, and in a [search fund](https://searchspheresource.com/glossary/search-fund) deal it is usually the real governance rather than the [board seats](https://searchspheresource.com/glossary/board-seat) are. The standard list covers selling the company, taking on debt above a threshold, issuing new equity, and changing what the business does. Read the debt line hardest of the four: a threshold set low enough puts a routine equipment purchase in front of the [cap table](https://searchspheresource.com/glossary/cap-table), which is a delay measured in weeks at exactly the moment a machine has broken.

In numbers: A $250,000 debt consent threshold turns a $300,000 truck replacement into a shareholder vote.

Source: https://searchspheresource.com/glossary/protective-provisions
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt