Finance · Funding and capital · Component
Covenant and rights register
Everything a capital provider can require, restrict or trigger, held in one place with the current headroom against each.
The deliverable
What it is
Loan agreements and investment documents each contain obligations, and they are usually read once, at signing. A decision can then be taken — a new facility, a disposal, a dividend — that one provider has the right to block or that breaches a test nobody was watching.
The register holds the obligations themselves. How and when capital providers are informed is a separate matter, handled under Reporting in Stakeholders.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
Investor rights
Consent rights, vetoes, board seats and pre-emption held by investors, and the decisions each one reaches.
3 attributes: Holder · Right type · Scope
LearnTrigger events
Events that allow a provider to demand repayment, convert, or change terms — a change of control, a default, a disposal.
3 attributes: Trigger event · Consequence · Clause
Learn
Use the agreement’s definitions when measuring headroom. Management-account figures can pass a test the agreement would fail.
The other components in funding and capital
Funding plan
The capital the organisation expects to need over the planning horizon, when it needs it, and the sources under consideration.
LearnCapital structure
The current mix of equity and debt, who holds each part, and the mix the organisation has decided to aim for.
Learn