Hedge clause
Hedge clause in the articles of association means that shareholders or other have the right to redeem a share that been transferred to a new owner.
Our standard articles of association
Our standard articles of association include two of the provisos, the pre-emption and the option clause, which normally gives the best protection for the remaining shareholders versus new and perhaps unwanted partners in the company.
Option clause
Option clause means that remaining shareholders (or others) have the right to purchase shares for sale in the company before others.
Pre-emption clause
The most common type of hedge clause is the pre-emption clause. This means that the shareholders shall have the opportunity to without exception buy shares that have been transferred to anyone else.
Consent clause
Consent clause means that shares can be transferred to a new owner but only with the company’s consent.
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