We have a situation where we have taken investment into our startup from friends and family on verbal agreement based on iSAFE notes. Due to negligence of the CA, the required documents and preferential share allocation has not been done. The first trench of investment was received in May 22. We need to raise a next round of investment and the due diligence is failing due to this lapse. The penalties and other loopholes being suggested by CS and CA are not very convincing for the long term stability and security of the company. Since the investment is taken from friends, we can renegotiate the terms if required. What are the possible solutions for this?
