Q&A

Question: What does a bad leaver event mean?

A bad leaver event refers to the actions of shareholders in a company and is defined under the Shareholders Agreement to which is applies. Some examples include the shareholder being terminated from their role if they are an employee, breaching the Shareholders Agreement, and it may also include events such as being found guilty of a criminal offence. A bad leaver event also relates to what will happen to the shareholders shares on that event, they will likely be required to sell back their shares and may be paid a lower rate on the shares.