Deadlock provisions in shareholders agreements: corporate and ...
Deadlock provisions in shareholders agreements: corporate and ...
Deadlock provisions in shareholders agreements: corporate and ...
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<strong>Deadlock</strong> <strong>provisions</strong> <strong>in</strong> <strong>shareholders</strong><br />
<strong>agreements</strong>: <strong>corporate</strong> <strong>and</strong> litigation<br />
perspective<br />
Warsow Sem<strong>in</strong>ar<br />
June 6th, 2013<br />
By:<br />
- Cécile Amayen, General Counsel M&A, Orange<br />
- François Hellot, Partner, Dechert<br />
- Xavier Nyssen, Partner, Dechert<br />
© 2013 Dechert LLP
<strong>Deadlock</strong> <strong>provisions</strong> <strong>in</strong> <strong>shareholders</strong><br />
<strong>agreements</strong>: <strong>corporate</strong> <strong>and</strong> litigation<br />
perspective<br />
OVERVIEW:<br />
1. Types of <strong>Deadlock</strong> Situations<br />
2. Ways of Resolution<br />
3. Impediments <strong>and</strong> <strong>Deadlock</strong> Enforcement
Types of <strong>Deadlock</strong> Situations<br />
• What is a deadlock<br />
• Sensitive/strategic issues benefit<strong>in</strong>g from a<br />
specific decision mak<strong>in</strong>g process<br />
• Artificial deadlock (arbitrage opportunities)
Ways of Resolution<br />
• Management or board member removal<br />
• Escalation clause<br />
• Suspension of veto rights<br />
• Exit mechanisms<br />
– Price determ<strong>in</strong>ation<br />
• Bus<strong>in</strong>ess cont<strong>in</strong>uity
Impediments <strong>and</strong> <strong>Deadlock</strong><br />
Enforcement<br />
• Securities regulations<br />
• Level of local sharehold<strong>in</strong>g<br />
• <strong>Deadlock</strong> acknowledgment<br />
• Restrictions on transfer of shares<br />
• Enforcement of court decisions<br />
or arbitral awards<br />
• Change <strong>in</strong> law
Dechert LLP<br />
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