Equity Shareholders Agreement With Call Option In Fairfax
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Within the shareholders' agreement format, detail both pre-emption rights as well as drag-along and tag-along rights. Pre-emption rights give existing shareholders the first right to buy shares before they are offered to outsiders.
Protecting Your Rights As A Shareholder First, every shareholders' agreement that you sign should include a buy-sell provision. This allows you to get rid of your shares and leave a company if you need to do so, or acquire more if you are so inclined.
The shareholders' agreement should outline how often the board will meet, and how shareholders can make decisions to manage the business. Most importantly, it should outline what will happen if a deadlock occurs and how disagreements will be resolved.
Within the shareholders' agreement format, detail both pre-emption rights as well as drag-along and tag-along rights. Pre-emption rights give existing shareholders the first right to buy shares before they are offered to outsiders.
A put and call option agreement for use by a private limited company where the seller grants the buyer a call option over shares and the buyer grants the seller a put option over the same shares.
There are two main types of options: call options, which give the holder (buyer) the right to buy the underlying asset, and put options, which give the holder (buyer) the right to sell the underlying asset.
