> My best guess is that the situation works something like this: As a Key Shareholder (>1%), you have to approve the issuance of new shares. "Key shareholder"

> My best guess is that the situation works something like this: As a Key Shareholder (>1%), you have to approve the issuance of new shares. "Key shareholder" isn't a thing. Shareholders elect/appoint board members. The board issues new shares. A shareholder with simply >1% of equity, say 2%, has no power over the board. You, as an employee, have no guarantees against dilution. Dilution isn't necessarily a bad thing IF the overall value of your equity increases (e.g., the company raises at a larger valuation). The odds of the board deciding to screw over one employee with a small share of equity seem quite low. The potential legal costs and reputation risks will most likely outweigh the cost of either buying you out or, what is most likely, doing nothing.