Shotgun Clause

What is Shotgun Clause?

Shotgun Clause is one of legal terms that means A buy-sell agreement where a shareholder wishes to sell his or her shares, or an irreconcilable disagreement on a fundamental issue in regards to the corporation breaks out between shareholders, the sale can be forced by the sell of the holdings of one shareholder to the other.

 

source: www.duhaime.org/LegalDictionary/

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