Business agreements are crucial in order to stay safe and secure during a business transaction, or in a partnership. If finding yourself in a situation wherein you have entered into a shareholder agreement and are looking to get out, this will provide you with the knowledge and information you need to be able to identify an exit strategy to the unwanted partnership.
- Remember that a shareholders agreement is really just a contract and you agreed to its terms – terms which are set out in the agreement.
- In the case of a right of first refusal offer, the person wanting to sell their shares must make the first offer to the existing shareholder(s), if the existing shareholders decline – then the person wanting to sell their shares can sell to a third party for that same price for a specified period of time.
- Usually the shareholder agreement will specify that shares must be transferred in certain situations – such as insolvency or a breach.
“Getting out of a shareholders agreement can be tricky and often leads to costly disputes. At LegalVision one of the most common questions we get from our clients is how they can exit a shareholders agreement without grief.”