The contracts Arabia offers; Legal agreements and contracts, faster and easier access to the actual agreements used in transactions for all sectors. Our agreement database provides competitive knowledge and reference conditions for businessmen or lawyers negotiating a deal or agreement covering different types of transactions, such as employment contracts, technology licensing agreements, financing agreements and much more. Tag Along law: Unlike the Drag-alone law, Tag Along is designed to protect minority shareholders within the company. In the event that a third party makes an offer to purchase from one of the shareholders for its interests in the company, the other shareholders may, under the same conditions, offer their own shares to the third party. Therefore, the third party acquires the number of stakes initially desired, but in proportion to all shareholders who exercise this right. This clause is intended to protect minority shareholders in the event of a possible change of control within the company, thus facilitating their exit from the project. Exclusive: the commitment of shareholders to concentrate their activities and all their efforts on the development of the company without having any other activity, unless the agreement confirms it. Deadlock (or blocking) Rights: Deadlock`s right (or blocking) allows a shareholder to block (not authorize) any act/decision, which other shareholders agree 100%. If that shareholder does not wish to do so, he will not be executed. Percentage of equity per capital (z.B 20%) can be defined.
This clause to protect the rights of minority shareholders can, for example, block capital increases, debt, hiring of staff, salaries, etc. The shareholder contract of a new company or foundation is an agreement signed by the shareholders, the purpose of which is to regularize internal relations within the company and to define the ways in which disputes are resolved in the event of a conflict. In conclusion, partners who create a new company or startup must have a shareholders` pact that meets the needs of the business project that needs to be developed and defines from the outset the main themes mentioned above. Drag-Along recht: This clause ensures that all shareholders are required to sell if certain conditions are met, for example. B with a percentage of favorable votes (the percentage set in the contract), whether there is a majority or not.