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.