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For example, if a shareholder decides to sell his shares, at the request of the other shareholders, he must ensure that the buyer of his shares will also buy a proportionate number of shares from the other shareholders. As a result, a shareholder who negotiates the sale of his shares must also determine the conditions for the sale of shares of other shareholders. Drag-along clause It allows a specific shareholder who has found a potential buyer for the shares to "force" other shareholders to sell their shares on similar terms.
It is worth noting that the right to use the drag along clause is often associated with additional conditions, for example setting a philippines photo editor minimum price for the shares. A drag along clause may also protect the interests of minority investors by providing them with an equal opportunity to sell their shares on favorable terms when the dominant shareholder decides to sell their shares. How to prepare an investment agreement? Preparing an investment agreement is a process that requires taking into account several key steps. Here are some tips on how to prepare it.
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Identification of the parties to the contract the investor, i.e. the person or organizational unit contributing its financial capital and the purpose of the investment e.g. company development, financing of the project . Presentation of the investment - what it concerns, its value, specification of individual stages of the project, percentage share of individual parties to the contract, payment deadlines, etc. Determining the rights and obligations of the parties to the contracts and including the necessary investment clauses securing the interests of the enterprise/investor. Concluding statements that are intended to facilitate the resolution of possible disputes.
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