Commentary

149 Importance of shareholders’ agreement in management buyouts

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

149 Importance of shareholders’ agreement in management buyouts

| Commentary

149 Importance of shareholders’ agreement in management buyouts

Whatever the size of the buy-out, it is in the interests of both the managers and the investors to have a properly-drafted shareholders’ agreement1. In the case of a simple management buy-out, this is necessary to give the providers of equity finance detailed minority protection rights as they are unlikely to be happy to rely on any protection they might have under the Companies Act 2006. In the case of a large-scale management buy-out, whether highly leveraged or not, it might be thought that it would be the managers

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