15/07/2022
A Shareholder Agreement is one of the most important pieces of documentation that a company could have in their legal arsenal. They contain a complex variety of clauses, but did you know the most common exit clauses are called "drag along" and "tag along" provisions?📜
Simpson Western discusses these provisions in their latest article titled: "Shareholders' rights"
A "Drag Along" clause enable Majority Shareholders to ability to require minority shareholders to sell shares or business to the buyer. On the contrary, a "Tag Along" clause enables minority shareholders to have majority shareholders endeavor for procurement of an offer on the same terms.
Like to learn more? Click the link below to read the insight!🥝
http://www.simpsonwestern.co.nz/helpful-reading/shareholders-rights/?platform=hootsuite&Haast+Law=Linkedin+
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Starting a business is an exciting proposition. However, life circumstances may change or shareholding relationships may alter such that you wish to exit the company. It is important to ensure all parties are on the same page from the start as to how you will manage your exit arrangement.
