Alabama Right of First Refusal Clause for Shareholders' Agreement

State:
Multi-State
Control #:
US-01770
Format:
Word; 
Rich Text
Instant download

Description

This is a model clause for a shareholder's agreement addressing Right of First Refusal. If a shareholder wishes to sell shares, the company will be given notice and has the right to buy the shares during a certain limited time period. Adapt to fit your circumstances.

How to fill out Right Of First Refusal Clause For Shareholders' Agreement?

US Legal Forms - one of the largest collections of legal documents in the United States - offers a variety of legal document templates that you can download or print.

Through the website, you can access thousands of forms for business and personal purposes, organized by categories, states, or keywords. You can find the latest versions of forms such as the Alabama Right of First Refusal Clause for Shareholders' Agreement in moments.

If you have an account, Log In and download the Alabama Right of First Refusal Clause for Shareholders' Agreement from your US Legal Forms collection. The Download button will appear on each template you view. You can access all previously downloaded forms in the My documents tab of your account.

Complete the transaction. Use your credit card or PayPal account to finalize the transaction.

Select the format and download the form onto your device. Edit. Fill out, modify, print, and sign the downloaded Alabama Right of First Refusal Clause for Shareholders' Agreement. Every template you add to your account has no expiration date and is yours indefinitely. So, if you want to download or print another copy, simply navigate to the My documents section and click on the form you need. Access the Alabama Right of First Refusal Clause for Shareholders' Agreement with US Legal Forms, the most extensive library of legal document templates. Utilize thousands of professional and state-specific templates that meet your business or personal needs and demands.

  1. Ensure you have selected the correct form for your locality/county.
  2. Click the Review button to examine the content of the form.
  3. Check the form summary to make sure that you have selected the right form.
  4. If the form does not meet your needs, use the Search section at the top of the screen to find one that does.
  5. If you are satisfied with the form, confirm your choice by clicking the Purchase now button.
  6. Next, select the pricing plan you prefer and provide your details to register for an account.

Form popularity

FAQ

A right of first refusal is a fairly common clause in some business contracts that essentially gives a party the first crack at making an offer on a particular transaction. In real estate terms, the phrase right of first refusal operates similarly.

When you have a first right of refusal the seller must contact you and let you potentially move forward with a purchase before an offer can be accepted from another party. The first right of refusal can be put together either before a home is listed for sale or during the time it is on the market.

The right of first refusal is usually triggered when a third party offers to buy or lease the property owner's asset. Before the property owner accepts this offer, the property holder (the person with the right of first refusal) must be allowed to buy or lease the asset under the same terms offered by the third party.

A "right of first refusal" is a contractual right on the part of a potential buyer to purchase real property within a specified period of time after another potential purchaser submits a purchase offer.

To be enforceable, options and rights of first refusal must usually be in writing, signed, contain an adequate description of the property, and be supported by consideration. They may be included in lease contracts, or they may be drafted as standalone agreements.

Rights of first refusal clauses are similar to options contracts as the holder has the right, but not the obligation, to enter into a transaction that generally involves an asset. The person with this right has the opportunity to establish a contract or an agreement on an asset before others can.

When some of the shareholders wish to sell their share, a clause in the shareholder's agreement should state that the shareholders who wish to sell their shares have to show the right to match an offer received from a third party. This is known as the right of first refusal.

Once that is done the ROFR holder has the option of purchasing the property instead or waiving their ROFR and allowing another sale to go through. To get to closing, a title company has to have a signed Waiver of Right of First Refusal document in the file before funding can occur.

The right of first refusal is usually triggered when a third party offers to buy or lease the property owner's asset. Before the property owner accepts this offer, the property holder (the person with the right of first refusal) must be allowed to buy or lease the asset under the same terms offered by the third party.

A "right of first refusal" is a contractual right on the part of a potential buyer to purchase real property within a specified period of time after another potential purchaser submits a purchase offer.

Trusted and secure by over 3 million people of the world’s leading companies

Alabama Right of First Refusal Clause for Shareholders' Agreement