Franklin Ohio Right of First Refusal Clause for Shareholders' Agreement

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Franklin
• 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. Franklin Ohio Right of First Refusal Clause for Shareholders' Agreement is a provision that grants existing shareholders the first opportunity to purchase additional shares before they can be sold to outside parties. It ensures that shareholders have the first right to acquire any additional shares in the company, maintaining control and preventing dilution of ownership. This clause is commonly used in Shareholders' Agreements in Franklin, Ohio, as it helps protect the interests of existing shareholders and allows them to maintain their proportional ownership in the company. By having the right of first refusal, shareholders are given the chance to invest further in the company and participate in its growth. There are different types of Right of First Refusal Clauses that can be included in a Shareholders' Agreement in Franklin, Ohio: 1. Standard Right of First Refusal: This type of clause gives existing shareholders the right to purchase any additional shares before they are offered to external parties. The price and terms of the offer are generally determined in accordance with the existing market value or a predetermined formula. 2. Right to Match: In this variation of the clause, the existing shareholders are given the opportunity to match the terms of an offer made by a third party. If a shareholder wishes to exercise this right, they must match the proposed offer and prevent the sale to the external party. 3. Right of Co-Sale: This clause is often used when a significant shareholder intends to sell their shares to a third party. It grants the remaining shareholders the right to include their shares in the sale on the same terms and conditions, ensuring that the shares of all parties are purchased together. 4. Right of First Offer: Unlike the right of first refusal, this clause requires the selling shareholder to first offer their shares to the existing shareholders. However, the existing shareholders are not obligated to match the offer. They have the option to refuse the purchase, allowing the selling shareholder to proceed with the sale to an outside party. By incorporating a Franklin Ohio Right of First Refusal Clause in a Shareholders' Agreement, shareholders can ensure that they have the opportunity to maintain or increase their ownership stake in the company, protecting their investment and influence.

Franklin Ohio Right of First Refusal Clause for Shareholders' Agreement is a provision that grants existing shareholders the first opportunity to purchase additional shares before they can be sold to outside parties. It ensures that shareholders have the first right to acquire any additional shares in the company, maintaining control and preventing dilution of ownership. This clause is commonly used in Shareholders' Agreements in Franklin, Ohio, as it helps protect the interests of existing shareholders and allows them to maintain their proportional ownership in the company. By having the right of first refusal, shareholders are given the chance to invest further in the company and participate in its growth. There are different types of Right of First Refusal Clauses that can be included in a Shareholders' Agreement in Franklin, Ohio: 1. Standard Right of First Refusal: This type of clause gives existing shareholders the right to purchase any additional shares before they are offered to external parties. The price and terms of the offer are generally determined in accordance with the existing market value or a predetermined formula. 2. Right to Match: In this variation of the clause, the existing shareholders are given the opportunity to match the terms of an offer made by a third party. If a shareholder wishes to exercise this right, they must match the proposed offer and prevent the sale to the external party. 3. Right of Co-Sale: This clause is often used when a significant shareholder intends to sell their shares to a third party. It grants the remaining shareholders the right to include their shares in the sale on the same terms and conditions, ensuring that the shares of all parties are purchased together. 4. Right of First Offer: Unlike the right of first refusal, this clause requires the selling shareholder to first offer their shares to the existing shareholders. However, the existing shareholders are not obligated to match the offer. They have the option to refuse the purchase, allowing the selling shareholder to proceed with the sale to an outside party. By incorporating a Franklin Ohio Right of First Refusal Clause in a Shareholders' Agreement, shareholders can ensure that they have the opportunity to maintain or increase their ownership stake in the company, protecting their investment and influence.