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Russian Roulette Provision Shareholder Agreement

  • October 05, 2021

In addition, sufficiently long periods should be provided for to allow, for example, a shareholder to provide debt financing for the acquisition of the holding. In order to counter the risk of abuse and, above all, the possible ineffectiveness of the clause, it should also be agreed that the purchase price established by the shoot out clause must not be lower than the book value. According to the Oberlandesgericht Nuremberg, if a party does not wish to expose itself to the risk associated with such clauses, it should not engage in such proceedings and should not agree with the co-shareholder on a shoot-out clause. According to the judgment of the Oberlandesgericht Nuremberg, it is unlikely that a financial equilibrium a posteriori will lead to inefficiency. . . .