Exit rights of minority shareholders in a private limited company (IVOR nr. 72) 2010/1.2.1:1.2.1 Categories of exit rights

Exit rights of minority shareholders in a private limited company (IVOR nr. 72) 2010/1.2.1

1.2.1 Categories of exit rights

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

In this study, an exit right is defined as the statutory right of a shareholder that entitles him to sell his shares to the company or to his co-shareholders in return for consideration, enforced either directly or by way of legal proceedings. As reference is made to statutory rights, contractual exit rights are not included in the definition.

Exit rights can be divided into the following four categories:

(a)winding-up remedies;

(b)oppression remedies;

(c)

appraisal rights; and

(d)exit rights at will.

The first two categories vary from the last two categories through the use of open standards. The third category differs in this respect for the reason that appraisal rights specifically describe the circumstances in which an exit right arises. The fourth category offers an exit regardless of the circumstances, but regularly requires that certain formal rules be taken into regard.

Deze functie is alleen te gebruiken als je bent ingelogd.