Collin Texas Right of First Refusal Clause for Shareholders' Agreement

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Collin
• Control #: US-01770
• Format: Word; Rich Text

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. The Collin Texas Right of First Refusal Clause for Shareholders' Agreement is a provision that outlines the rights of shareholders in a company to purchase shares before they are offered to third parties. This clause is commonly found in shareholders' agreements to protect the interests of existing shareholders and provide them with the opportunity to maintain ownership control. The Collin Texas Right of First Refusal Clause ensures that in the event a shareholder intends to sell their shares, they must first offer them to other existing shareholders. This provision allows shareholders to have priority over external parties, ensuring continuity and stability within the company. The clause aims to prevent unwanted or unqualified shareholders from entering the company, maintaining the control and vision established by the existing shareholders. There are different types of Collin Texas Right of First Refusal Clauses that can be included in a Shareholders' Agreement. Some of the most common types are: 1. Standard Right of First Refusal: This type of clause gives existing shareholders the priority to purchase shares on the same terms and conditions as offered by the selling shareholder to a third party. It ensures that existing shareholders have a fair opportunity to acquire additional shares and maintain their ownership percentage. 2. Right of First Offer: In this variation, instead of having the right to match an external offer, shareholders are given the first opportunity to make an offer to purchase the shares of the selling shareholder. The selling shareholder is then required to negotiate with the shareholder who made the initial offer before considering offers from third parties. 3. Right of First Negotiation: This clause grants existing shareholders the right to negotiate the terms of the sale before the shares are offered to third parties. It allows shareholders to have a say in the price, terms, and conditions of the transaction, giving them more control over the sale process. 4. Right of Co-Sale: This provision is often included in addition to the Right of First Refusal Clause. It grants existing shareholders the right to sell their shares proportionally to a third-party buyer. This ensures that all shareholders have an equal opportunity to divest their shares if another shareholder wishes to sell theirs. The Collin Texas Right of First Refusal Clause serves to protect the interests of shareholders and maintain control within a company. By giving existing shareholders the priority to purchase shares, it fosters stability, continuity, and alignment among shareholders. It is crucial for shareholders to carefully review and understand the specific terms and conditions outlined in the Shareholders' Agreement, as they may vary depending on the company and the specific requirements of the parties involved.

The Collin Texas Right of First Refusal Clause for Shareholders' Agreement is a provision that outlines the rights of shareholders in a company to purchase shares before they are offered to third parties. This clause is commonly found in shareholders' agreements to protect the interests of existing shareholders and provide them with the opportunity to maintain ownership control. The Collin Texas Right of First Refusal Clause ensures that in the event a shareholder intends to sell their shares, they must first offer them to other existing shareholders. This provision allows shareholders to have priority over external parties, ensuring continuity and stability within the company. The clause aims to prevent unwanted or unqualified shareholders from entering the company, maintaining the control and vision established by the existing shareholders. There are different types of Collin Texas Right of First Refusal Clauses that can be included in a Shareholders' Agreement. Some of the most common types are: 1. Standard Right of First Refusal: This type of clause gives existing shareholders the priority to purchase shares on the same terms and conditions as offered by the selling shareholder to a third party. It ensures that existing shareholders have a fair opportunity to acquire additional shares and maintain their ownership percentage. 2. Right of First Offer: In this variation, instead of having the right to match an external offer, shareholders are given the first opportunity to make an offer to purchase the shares of the selling shareholder. The selling shareholder is then required to negotiate with the shareholder who made the initial offer before considering offers from third parties. 3. Right of First Negotiation: This clause grants existing shareholders the right to negotiate the terms of the sale before the shares are offered to third parties. It allows shareholders to have a say in the price, terms, and conditions of the transaction, giving them more control over the sale process. 4. Right of Co-Sale: This provision is often included in addition to the Right of First Refusal Clause. It grants existing shareholders the right to sell their shares proportionally to a third-party buyer. This ensures that all shareholders have an equal opportunity to divest their shares if another shareholder wishes to sell theirs. The Collin Texas Right of First Refusal Clause serves to protect the interests of shareholders and maintain control within a company. By giving existing shareholders the priority to purchase shares, it fosters stability, continuity, and alignment among shareholders. It is crucial for shareholders to carefully review and understand the specific terms and conditions outlined in the Shareholders' Agreement, as they may vary depending on the company and the specific requirements of the parties involved.