Definition for : Buy-sell provision

Under a buy-sell Provision, one of various possible exit clauses in a Shareholders' agreement. Shareholder A offers to sell its shares at a price X to shareholder B. Either B agrees to buy the shares at price X, or if he refuses, he must offer his stake to A at the same price X. A buy-sell Provision is also called Dutch clause or Shotgun clause.

(See Chapter 40 Setting up a company or financing start-ups of the Vernimmen)

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