New Share Issue​ Shareholder Agreement

The Good-Bad Leaver clause within such an agreement delineates the conditions under which a shareholder leaving the company can retain or must sell their shares. A "Good Leaver" may be permitted to retain shares or sell them at a fair value, whereas a "Bad Leaver," often someone dismissed for cause, may be required to sell their shares back to the company or other shareholders at a discounted value.

This type of agreement helps safeguard the interests of the company and remaining shareholders by controlling ownership changes and maintaining stability within the shareholder base. It also provides clarity and protection in scenarios where a shareholder's departure could otherwise lead to conflicts or disruptions in company operations.