Contractual agreements in venture capital, which is the primary source of financing for startups, can be divided into three categories: financial, control and exit agreements. Exit agreements refer to provisions that aim to facilitate investors' access to a successful and efficient exit from a venture-backed company. This is the ultimate and most critical phase of venture capital. Among the exit agreements, two of them directly affect the transfer of shares to third parties, which are the primary and common exit strategies and ways in venture capital. These two provisions, which are called the “exit agreements with effect on the transfer of shares to third parties” are the “Drag-Along Right” and “Tag-Along Right”. Analyzing the nature and function of the aforementioned agreements and examining their conformity with the relevant legal rules and regulations, as well as jurisprudential principles, reveals that despite doubts, implementing these important and useful provisions as legitimate agreements that do not conflict with imperative provisions will not face any legal obstacles under the Iranian legal system relying on the principles of freedom and validity of contracts.
Soltani, M., & Javan Molaei, A. (2024). Exit Agreements with Effect on the Transfer of Shares to Third Parties in Venture Capital. Legal Research Quarterly, (), -. doi: 10.48308/jlr.2024.231954.2518
MLA
Mohammad Soltani; Amirhossein Javan Molaei. "Exit Agreements with Effect on the Transfer of Shares to Third Parties in Venture Capital". Legal Research Quarterly, , , 2024, -. doi: 10.48308/jlr.2024.231954.2518
HARVARD
Soltani, M., Javan Molaei, A. (2024). 'Exit Agreements with Effect on the Transfer of Shares to Third Parties in Venture Capital', Legal Research Quarterly, (), pp. -. doi: 10.48308/jlr.2024.231954.2518
VANCOUVER
Soltani, M., Javan Molaei, A. Exit Agreements with Effect on the Transfer of Shares to Third Parties in Venture Capital. Legal Research Quarterly, 2024; (): -. doi: 10.48308/jlr.2024.231954.2518
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