Drag-along and tag-along clauses in shareholder agreements - Czech law perspective

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11220%2F23%3A10452389" target="_blank" >RIV/00216208:11220/23:10452389 - isvavai.cz</a>
Result on the web
<a href="https://lawinbusiness.vse.cz/wp-content/uploads/page/8/Perspectives-of-Law-in-Business-and-Finance.pdf" target="_blank" >https://lawinbusiness.vse.cz/wp-content/uploads/page/8/Perspectives-of-Law-in-Business-and-Finance.pdf</a>
DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Drag-along and tag-along clauses in shareholder agreements - Czech law perspective
Original language description
Drag-along and tag-long provisions are customary components of rights granted to investors within the terms of venture capital and private equity transactions. The drag-along right entitles a shareholder or a group of shareholders wishing to sell their shares in the company to, under certain conditions, compel all other shareholders to sell their shares under the same terms. Conversely, the tag-along right ensures that, again under certain conditions, shareholders wishing to sell their shares cannot do so unless they also arrange for sale of the other shareholders' shares. Both drag-along and tag-along clauses are adapted from common law jurisdictions wherein the clauses often form a part of constitutional documents of companies, i.e., usually articles of association or certificates of incorporation. When used in the Czech Republic and other civil law jurisdictions, drag- and tag-along clauses are primarily included in shareholders' agreement as agreements standing aside articles of association, i.e., outside of corporate constitutional documents. This paper assesses the functionality of the drag- and tag-along clauses in the context of Czech law and analyses the challenges imposed by the local law on the effectiveness and enforceability of such clauses.
Czech name
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Czech description
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Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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