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    Drag Along, Tag Along Clause for Shareholder Agreement

    $2.29

    This drag along, tag along clause can be inserted into a shareholder agreement to govern how the sale of shares from a shareholder to an arm's length third party must be conducted.

    • The share purchase agreement must include an offer by the buyer to purchase a pro rata share of the other shareholders' shares on the same terms and at the same time.
    • The terms apply to arm's length transactions only. The clause contains a definition of which parties are not considered arm's length.

    A Drag Along, Tag Along Clause is an exit strategy that protects the rights of minority shareholders while at the same time giving majority shareholders a means to force other investors to exit at the same time.

    Download Type: Microsoft Word
    Last Updated: 19-February-2021
    SKU: 604
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    Triggering Events for Share Sales in Shareholder Agreements

    $6.29

    Learn about the types of events which trigger a sale of shares under a Unanimous Shareholder Agreement, and the methods used to implement the sale.

    Triggering events include:
    • right of first refusal;
    • default buy-sell;
    • shotgun or forced sale;
    • transfer on death.
    Triggering Events for Share Sales in Shareholder Agreements is a downloadable MS Word file.

    Valuation of Shares Clause for Shareholder Agreement

    $2.29

    Make provision for determining the fair market value of shares with this downloadable Valuation of Shares clause for a Shareholder Agreement.

    The clause sets out the process by which the fair market value (FMV) of the shares will be arrived at in the event that the shareholders cannot agree, following a triggering event which has affected the FMV of the shares.

    The Valuation of Shares Clause for Shareholder Agreement is provided in MS Word format and is fully editable.

    Buy-Sell Provisions for Shareholder Agreement

    $6.29

    These optional buy-sell provisions can be inserted into a Shareholder Agreement to provide for the purchase and sale of shares among the shareholders of a company.

    • The remaining shareholders have right of first refusal to purchase a departing shareholder's shares.
    • Any buy-sell offers made during the notice period are irrevocable.
    • The purchase price must be paid in full on closing.
    These generic Shareholder Agreement Buy-Sell Provisions are in MS Word format and are fully editable.