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013a Example 1 Fairly Standard, but Imprecise Electrical Service Clause Form

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013a Example 1 Fairly Standard, but Imprecise Electrical Service Clause Form

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in business there's something known as the shotgun clause and it is wild this is a clause that can be enacted when there's a shareholder dispute or basically when the business owners just don't get along now the reason that a shotgun Clause gets enacted a lot is because it allows for somebody to leave the company and still get a fair valuation in most situations what will happen is one shareholder will tender an offer to the other shareholder let's say in this case it's at 50 cents per share the first option that this shareholder has is they can accept this offer and just walk away take the money and never think about it again or they can turn the terms of this deal around and they can buy all of this person's shares at 50 cents and take them out of the company and this ability to turn it around here makes the first shareholder give an honest and fair offer because they know otherwise they're going to get bought out at a very chea

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