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Shareholder Agreements – Part Five
October 12, 2011
Shareholder Agreements: 5) Shotgun clause A simple and effective way to facilitate a buy out is to add a “shotgun clause” to an agreement. Under a shotgun clause, one shareholder offers to buy the other shareholder’s shares. The other shareholder can either accept the offer or buy out the offeror’s shares on the same terms. [...]
Located in: Corporate and Commercial Law
Tagged: agreement, corporation, defaulting shareholders, distribution of profits, financing, participation in management and protection of minority shareholders, restrictions on share transfer, shareholder, shareholders agreements, shotgun clause, the death of a shareholder
