Amber has received a lucrative offer to purchase her shares in a closely held corporation.She is required to give her fellow shareholders an opportunity to acquire her shares at the same price offered by the outsider.Why is Amber required to do so?

Question

Quizplus · Accepted Answer

A right of first refusal clause in a shareholders' agreement requires a shareholder wishing to sell their shares to offer them to the other shareholders first, at the same price offered by an external party. This ensures that existing shareholders have the opportunity to maintain their proportional ownership before shares are sold to someone outside the corporation.

Amber Has Received a Lucrative Offer to Purchase Her Shares