right of first offer

Less frequent that the right of first refusal, a right of first offer is sometimes included in a shareholders agreement. This right requires a shareholder to first offer to sell its shares to the other shareholders of the corporation. If they choose not to acquire the shares, the shareholder is free to sell to a third party purchaser, provided that the terms and conditions are not more favourable to the third party purchaser.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.