Shareholder Agreement With Call Option

In the shareholders` agreement, an option clause defining the rights and obligations of the shareholders is the one in which the investor has the possibility either to “caller” the shares, or to “put them on the table”. This forces the founders to sell or buy the shares at a predetermined price. The expiry date is the last day of the option period, i.e. the period during which the option holder can exercise the Call option. Typically, the call option agreement ends on the expiration date. The appeal option agreement may also be structured so that it ends with the occurrence of other special circumstances as defined by the parties. By allowing a shareholder to sell shares to other shareholders at a fair price, a put option has the ability to protect both the shareholder who wishes to leave the family business and the remaining shareholders. The company may grant the call option to issue new shares or a shareholder to transfer existing shares. A stock exchange (option holder) and a licensor (the existing entity or shareholder) are parties to the option agreement.

The fellow may be a natural or legal person. Thinking about doing business with a family member? While many family businesses are thriving and thriving, statistics indicate that less than a third of these businesses are surviving the transition to the second generation. The same range of problems is faced with both the family business and the non-family business. However, due to the special relationship between its members, a family business has a unique dynamic and additional challenges. Since family problems can easily spread to the industry, a family business is particularly vulnerable. . . .