shotgun clause |
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Definition
Reciprocal provision in a shareholders' agreement whereby a party which offers to buyout the other party's shares at a certain price must accept the other party's counter offer (proposed within a certain number of days) to buy its shares at the same price. Shotgun clause is typically included where two parties have equal (50-50) shareholding.
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shotgun clause is in the Entrepreneurship, Management, & Leadership subject.
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