Phoenix Arizona Right of First Refusal Clause for Shareholders' Agreement

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• City: Phoenix
• 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. Phoenix, Arizona, Right of First Refusal Clause for Shareholders' Agreement A Right of First Refusal (ROAR) clause is a crucial component of a Shareholders' Agreement, particularly in Phoenix, Arizona. This clause grants existing shareholders the first opportunity to purchase additional shares before they are offered to external parties. In Phoenix, Arizona, there are various types of ROAR clauses that can be included in a Shareholders' Agreement. These include: 1. Basic Right of First Refusal: This type of clause enables existing shareholders to have the initial chance to purchase any newly issued shares that another shareholder intends to sell. It ensures that existing shareholders have the first right to maintain their proportionate ownership in the company. 2. Enhanced Right of First Refusal: This clause allows existing shareholders to exercise their right to purchase shares not only when a shareholder intends to sell but also when a shareholder receives an offer from an external party. This type of clause provides greater protection to existing shareholders as it minimizes the dilution of their ownership stake. 3. Right of First Offer: While similar to the ROAR clause, the Right of First Offer clause grants existing shareholders the right to submit an offer to purchase shares before they are made available to external parties. However, unlike the ROAR clause, the shareholder offering the shares is not obligated to accept the offer made by the existing shareholders. 4. Right of First Refusal on Transfer: This clause specifies that before a shareholder can transfer their shares to an external party, they must first offer them to existing shareholders. This ensures that existing shareholders have the opportunity to maintain control and participation in the company by acquiring additional shares. In Phoenix, Arizona, the inclusion of a ROAR clause in a Shareholders' Agreement is highly recommended as it safeguards the interests of existing shareholders. It maintains transparency and control, allowing shareholders to protect their investment by maintaining their ownership stake and avoiding unwanted dilution. Whether it is a basic ROAR, an enhanced version, or a right of first offer or refusal on transfer, these clauses contribute to the overall stability and governance of a company, encouraging fair and equitable treatment among shareholders.

Phoenix, Arizona, Right of First Refusal Clause for Shareholders' Agreement A Right of First Refusal (ROAR) clause is a crucial component of a Shareholders' Agreement, particularly in Phoenix, Arizona. This clause grants existing shareholders the first opportunity to purchase additional shares before they are offered to external parties. In Phoenix, Arizona, there are various types of ROAR clauses that can be included in a Shareholders' Agreement. These include: 1. Basic Right of First Refusal: This type of clause enables existing shareholders to have the initial chance to purchase any newly issued shares that another shareholder intends to sell. It ensures that existing shareholders have the first right to maintain their proportionate ownership in the company. 2. Enhanced Right of First Refusal: This clause allows existing shareholders to exercise their right to purchase shares not only when a shareholder intends to sell but also when a shareholder receives an offer from an external party. This type of clause provides greater protection to existing shareholders as it minimizes the dilution of their ownership stake. 3. Right of First Offer: While similar to the ROAR clause, the Right of First Offer clause grants existing shareholders the right to submit an offer to purchase shares before they are made available to external parties. However, unlike the ROAR clause, the shareholder offering the shares is not obligated to accept the offer made by the existing shareholders. 4. Right of First Refusal on Transfer: This clause specifies that before a shareholder can transfer their shares to an external party, they must first offer them to existing shareholders. This ensures that existing shareholders have the opportunity to maintain control and participation in the company by acquiring additional shares. In Phoenix, Arizona, the inclusion of a ROAR clause in a Shareholders' Agreement is highly recommended as it safeguards the interests of existing shareholders. It maintains transparency and control, allowing shareholders to protect their investment by maintaining their ownership stake and avoiding unwanted dilution. Whether it is a basic ROAR, an enhanced version, or a right of first offer or refusal on transfer, these clauses contribute to the overall stability and governance of a company, encouraging fair and equitable treatment among shareholders.