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Side Letters of shareholders and Drag Along Right

Publication at Faculty of Law |
2022

Abstract

The paper deals with agreements of shareholders that oblige a minority shareholder to transfer his stocks to the person to whom the majority shareholder transfers his stocks (drag along agreements). It discusses one of the possible legal constructions of such agreement. It distinguishes its legal consequences depending on whether it is contained in the by-laws of joint stock company or whether it is entered into outside them (so-called sidel etters).