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

Kód výsledku v 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>

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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&apos; 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&apos; 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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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&apos; 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&apos; 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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50501 - Law

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2023

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Perspectives of Law in Business and Finance

ISBN

978-606-95351-5-8

ISSN

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e-ISSN

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Počet stran výsledku

12

Strana od-do

29-40

Název nakladatele

ADJURIS – International Academic Publisher

Místo vydání

Bucharest, Paris, Calgary

Místo konání akce

Praha

Datum konání akce

3. 11. 2022

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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