Right Of First Refusal: A Contractual Restriction On Transfer Of Shares
Introduction Among various provisions of incorporating documents such as shareholder™s agreement in a corporation, an item will often appear labeled ROFR / Right of First Refusal. ROFR is a contractual right that obliges the selling shareholder not to sell its shares in the company to a third party without offering his shares to another party… Read More
Tags: Companies Act 1956, Company Law Board, Corporation, Delhi High Court, Pre-emption right, Right of First Refusal, ROFR, Shareholders' agreement
Call and Put Options Allowed By SEBI
Another breather for Corporate India after the passage of the Companies Act, 2013 is that SEBI has allowed companies to include call and put options in the M&A and Private Equity Agreements.[1] Companies can now enter contracts for pre-emption including right of first refusal, or tag-along or drag-along rights contained in shareholders agreements or articles… Read More
Tags: Companies Act, Derivatives, India, Private Equity, Regulation, Right of First Refusal, SEBI, Securities & Exchange Board of India, Shareholders' agreement