The Correlation between Agreements on Acquisition of Issuer Options and on Provision of an Option on Conclusion of a Share Sale and Purchase Agreement

Abstract

Options are one of the most demanded mechanisms for structuring by the subjects of professional exchange of their relations on the disposal of shares of companies. In an attempt to ensure possible risks, shareholders have the opportunity to use various option structures, in particular the option to conclude a contract and the emitent option. Each mechanism establishes an option right, taking into account the peculiarities of the applicable regulation to a particular mechanism, as well as shareholder legislation. The emitent’s option and the option to conclude a share purchase agreement, in the author’s opinion, should be considered through the prism of the agreement under which the option is transferred, the agreement to acquire the emitent’s option and the agreement to grant the option to conclude a share purchase agreement, respectively. These models are considered in the work in a comparative aspect, taking into account the specifics of the regulatory joint-stock and emisson legislation. The author gives the main related and distinctive features of the presented agreements, and also emphasizes the advantages of the contractual structure of the option to sell shares over a security that provides the option right to purchase shares.