A shareholders’ agreement is an arrangement among shareholders that describes how a company should be operated and outlines shareholders’ rights and obligations. The agreement also includes information on the management of the company and privileges and protection of shareholders. Basics of Shareholders’ Agreement A shareholders’ agreement is intended to ensure that shareholders are treated fairly and […]
What is an Employee Share Option Scheme (ESOS) ? It refers to a type of equity compensation granted by companies to their employees. Instead of granting shares directly, the company gives derivative options on the stock instead. These options come in the form of regular call options and give the employee the right to buy […]
WHAT IS PREEMPTIVE RIGHT A pre-emptive right is essentially a right of first refusal. The shareholder may exercise the option to buy additional shares but is under no obligation to do so. It provides an “anti-dilution right” to the shareholders by giving them an opportunity to buy more shares before they are offered to new […]
The role of due diligence in Mergers & Acquisitions
