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04:16 Jul 6, 2008
English to Russian translations [PRO] Law/Patents - Law (general)
English term or phrase: investors trust directors
The Directors are authorized to pay commissions to persons in consideration for them subscribing for, or agreeing to subscribe for shares in ____ or for procuring or agreeing to procure subscriptions for Shares. The Potential Investors are concerned that the effect of paying such a commission in connection with a subscription for Shares would be that the Shares being issued would effectively be issued at a discount, thereby diluting the value of the existing Shares.
This is a legitimate concern, although many investment funds allow for such commissions to be paid so as to help raise new funding and investors trust directors to act in the best interests of the fund.