Independent expert (optional clause)

Independent expert (optional clause)

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This document is a clause to be added to a shareholders’ agreement.

It is common in shareholders’ agreements to set out operational mechanisms around the appointment, role and outputs of an expert brought in to value the shares of the company, whenever this is required under the agreement.

Although the clause provided is fairly extensive, it is important to consider whether the mechanisms created are appropriate for the specific company and shareholders and to customise it accordingly.

Using this precedent

This is a general clause which can be inserted into a shareholders’ agreement. Provisions of this clause can also be used, as desired, to expand the expert determination provisions in the schedule to the “Shareholders’ agreement (short form)”.

When inserting this optional clause into an agreement, care must be taken to ensure that the agreement remains consistent. Cross-references, definitions and schedules should all be checked.

This document has been authored for LexisNexis by Elise Margow, Principal, Legally Speaking.

This document is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.