Texas Auction or Shotgun Clauses in Shareholders Agreements
Relatively few people know about the option of including what is known as a Texas Auction or Shotgun clause in a shareholders agreement. In this article I discuss a few points about them. They can vary, but in general, how they work is as follows: shareholders with (usually) very similar shareholding percentages in a company […]
The Application of the Consumer Protection Act to Franchise Agreements
The Consumer Protection Act (No. 68 of 2008) (“CPA”) governs franchise agreements, with the purpose of protecting the franchisees. The understanding is that this protection is required because: the franchisor may have extensive control over the operations of a franchisee’s business; the franchisor may have exaggerated the potential returns that the franchisee can earn, may […]