Why You Should Handle Disputes Swiftly

Due to investors being in different stages in the raise (i.e. some investors are not countersigned, others have the first round of shares issued), each dispute and chargeback is different. Despite these differences, each dispute and chargeback can have long-standing consequences that can drastically affect your company.

If a dispute is initiated by an investor but not appropriately managed, this can lead to a potential situation where the company’s capitalization table is incorrect due to a chargeback, shares are distributed but not paid for, and your company may draw the attention of financial regulatory bodies.

Since disputes generally have a two-week window where your team can address the situation, it is critical that your team move quickly to decide the best course of action.

See here for information on disputes and chargebacks.

See here for more information on how to manage a dispute.