The management organ of a company, which can be composed of either a single person (the manager) or several persons (the managers) who are authorised, in accordance with the rules set out in the company's articles of association, to act alone or collectively (as a management board).
|Managerial authority (internal)|
Mandatory conversion usually occurs upon an initial public offering or when a specified percentage of the preferred shares or convertible bond/note holders so agree. The purpose of mandatory conversion is to eliminate preferred shares or convertible bonds/notes in order to facilitate the public offering of the company.
|Memorandum of understanding/heads of agreement||
Before entering into a final agreement, the parties may sign a document setting out their mutual rights and obligations. A memorandum of understanding or heads of agreement describes the background to the transaction (a preamble) and confirms the most important aspects of the deal. It may also contain provisions relating to the parties' intentions as well as binding provisions (e.g. the steps in the negotiation process, applicable law, jurisdiction, confidentiality, etc.).
Reason for being or raison d'être of a company, defined with reference to its corporate purpose. A company's mission can be determined by answering the following questions: