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droit de suite

English translation: piggyback

07:54 Apr 30, 2008
French to English translations [PRO]
Bus/Financial - Business/Commerce (general)
French term or phrase: droit de suite
Hi, everything I see on this term, including in the glossary refers to artists rights or is inconclusive in my context. Here is appears in a shareholders agreement. If one of the two parties to the agreement wants to sell its shares to a third party, the other party first has a right of preemption, and then a droit de suite. This means it is entitled to make the vendor party buy the same proportion of its shares as it is intending to sell of its own. At least that's how I understand it. I've seen resale rights and tag along rights but don't feel sure about either of them. Here's the context, as ever I am very grateful for all your input,

En cas de notification par une Partie de sa volonté d'exercer le droit de suite, la Partie aliénante devra, avant de pouvoir conclure quelque contrat que ce soit ayant pour effet de transférer ses actions au Tiers candidat acquéreur, acquérir les actions détenues par l' autre Partie aux memes conditions de prix que ceux qui lui ont été proposées par le candidat acquéreur. Le droit de suite portera sur une proportion des actions de l' autre Partie égale a la proportion résultant du rapport entre le nombre d'actions que la partie aliénante envisage de céder et le nombre total d'actions détenues par cette partie aliénante. La notification de l'exercice du droit de suite par l'autre Partie emporte formation du contrat de vente entre Parties, sous condition résolutoire de non réalisation de la vente par la Partie aliénante au Tiers candidat acquéreur.
Linebyline
United Kingdom
Local time: 22:56
English translation:piggyback
Explanation:
Piggy-back applies to contractual agreements in law, more specifically shareholder selling rights. To apply, the piggy-back clause MUST be included in the corporation's shareholder agreement, which is part of the incorporation materials.

If one shareholder decides to sell shares to a third party, and if the sale of the shares would result in a change of control of the corporation, the offeror must notify all other shareholders. The other shareholders can 'piggy-back' into the original shareholders offer to the third party, and offer to sell their shares to the third party for the same agreed upon price. In order to purchase ANY of the shares, the third party must then purchase ALL shares included by the original shareholder, and any subsequent piggy backers.
http://en.wikipedia.org/wiki/Piggy-back_(law)

Clause piggyback (droit de suite) Cette clause prévoit l’obligation pour les actionnaires minoritaires de vendre leurs actions lorsque les actions de l’actionnaire majoritaire sont vendues à un tiers acquéreur. Cette clause assure les actionnaires minoritaires d’un marché pour les actions qu’ils détiennent.
http://www.capitale-entrepreneur.qc.ca/?p=54

Not to say that the other answer(s) aren't just as valid - I'm not qualified to say.
Selected response from:

Alain Pommet
Local time: 23:56
Grading comment
Great, many thanks,
4 KudoZ points were awarded for this answer



Summary of answers provided
3 +1piggyback
Alain Pommet
3drag-along right
rkillings


  

Answers


35 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
piggyback


Explanation:
Piggy-back applies to contractual agreements in law, more specifically shareholder selling rights. To apply, the piggy-back clause MUST be included in the corporation's shareholder agreement, which is part of the incorporation materials.

If one shareholder decides to sell shares to a third party, and if the sale of the shares would result in a change of control of the corporation, the offeror must notify all other shareholders. The other shareholders can 'piggy-back' into the original shareholders offer to the third party, and offer to sell their shares to the third party for the same agreed upon price. In order to purchase ANY of the shares, the third party must then purchase ALL shares included by the original shareholder, and any subsequent piggy backers.
http://en.wikipedia.org/wiki/Piggy-back_(law)

Clause piggyback (droit de suite) Cette clause prévoit l’obligation pour les actionnaires minoritaires de vendre leurs actions lorsque les actions de l’actionnaire majoritaire sont vendues à un tiers acquéreur. Cette clause assure les actionnaires minoritaires d’un marché pour les actions qu’ils détiennent.
http://www.capitale-entrepreneur.qc.ca/?p=54

Not to say that the other answer(s) aren't just as valid - I'm not qualified to say.

Alain Pommet
Local time: 23:56
Specializes in field
Native speaker of: English
PRO pts in category: 128
Grading comment
Great, many thanks,

Peer comments on this answer (and responses from the answerer)
agree  rkillings: This is the variant I meant! I believe drag-along is the inverse of piggyback.
8 hrs
  -> Thanks for the info and confirmation
Login to enter a peer comment (or grade)

14 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
drag-along right


Explanation:
Or some variant thereof.

Google it, that will get you started.

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Note added at 1 day9 mins (2008-05-01 08:03:57 GMT)
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Sorry, it's "tag-along right", created by a piggyback clause:
Def.:
"The right to "piggy back" on the sales of shares by another shareholder."
http://www.lse.co.uk/financeglossary.asp?searchTerm=&iArticl...

--------------------------------------------------
Note added at 1 day30 mins (2008-05-01 08:25:15 GMT)
--------------------------------------------------

Here's another source that *distinguishes* between tag-along and piggyback rights:
"Shareholder agreements generally grant the parties the following rights: the option to put their stakes to their partners or to call their partners’ stakes, in part or in whole, at a strike price that is typically equal to ‘fair’ value; tag-along rights (or co-sale agreements)
that allow the parties to demand of a trade buyer buying their partners’ stakes the same treatment as received by their partners; drag-along rights that allow the parties to force their partners to join them in selling their stakes to a trade buyer in the case of a trade sale; demand rights (or registration rights) that allow the parties to force their partners to agree to taking the firm public in an IPO; piggy-back rights that allow the parties to demand to
be included in an IPO in proportion to their stakes in the firm; and catch-up clauses that maintain the parties’ claims to part of the payoff from a trade sale or an IPO when the parties have ceded their stakes to their partners following the partners’ exercise of a call option."
http://www.lse.ac.uk/collections/RICAFE/pdf/RICAFE-WP06-Chem...

rkillings
United States
Local time: 14:56
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 278
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