Voluntary Redemption

Voluntary Redemption is a redemption of securities initiated by the issuer (or agreed by the parties) rather than triggered by a mandatory investor right, typically subject to legal limits and contractual conditions. In preferred stock structures, Voluntary Redemption can be used to return capital, simplify the cap table, or resolve investor positions, and Voluntary Redemption terms are often negotiated around price, timing, and consent requirements.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.