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Document Id : 5852
File Type : PDF
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Shotgun Clauses and Owner Managers
Should your company shareholder agreement include a shotgun clause? Learn more about these provisions from an owner-manager's perspective, with this introductory article entitled "Shotgun Clauses & Owner Managers".
- A 'shotgun clause' or 'buy-sell clause' is a provision in the agreement that states if a shareholder wants out of the company, he/she can force the other shareholders to buy his/her shares.
- This article discusses the benefits and pitfalls of shotgun clauses, and the situations in which they work best.
- The author is an Ontario lawyer, with expertise in buy-sell agreements and other shareholder issues.
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