Exam F3 Topic 2 Question 95 Discussion

A. The private company obtains a stock market listing on a recognised exchange within the next 5 years.

B. The management team agrees to buy back the Venture Capital Funds shareholding in 5 years time at its original cost.

C. The Venture Capital Fund has a legal entitlement to sell its shareholding to any third party investor if the company has not obtained a stock market listing within 5 years.

D. The management team has an option to buy the Venture Capital Fund's shares for their nominal value which can be exercised in 5 years time.

E. The Venture Capital Fund has an option to sell its shareholding to the company at twice its original cost which can be exercised in 5 years time.