droit de cession conjointe et proportionnelle

English translation: joint and proportional tag-along rights

11:25 Jul 8, 2020
French to English translations [PRO]
Bus/Financial - Investment / Securities
French term or phrase: droit de cession conjointe et proportionnelle
Complicated shareholders' agreement. The investors appear mainly to be State and regional authorities.

There is already an entry for "droit de cession conjointe" :
https://www.proz.com/kudoz/french-to-english/law-contracts/9... - here the chosen answer is "right of joint assignment". But I have a strongish suspicion that there is a more specific minority shareholdership-related term in English (see below).

"Cédant
Désigne le Fondateur envisageant de procéder à un Transfert de tout ou partie de ses Titres et dont un tel Transfert ouvre le droit aux Investisseurs d’exercer leur Droit de Cession Conjointe et Proportionnelle."

"Droit de Cession Conjointe et Proportionnelle
Désigne le droit de cession conjointe et proportionnelle des Investisseurs stipulé à l’article 4.1.
Droit de Cession Conjointe Totale
Désigne le droit de cession conjointe totale des Investisseurs stipulé à l’article 4.2."

"Article 4 – Droit de Cession Conjointe
4.1.
Droit de Cession Conjointe et Proportionnelle des Investisseurs
Sauf en cas de Transmission Libre, le Fondateur s’interdit de procéder à un Transfert de tout ou partie des Titres qu’il détient dans la Société au profit d’un Tiers (ci-après le « Cessionnaire »), sans proposer aux Investisseurs de Transférer, en même temps et aux mêmes conditions, des Titres de la Société leur appartenant, dans les proportions ci-après définies.
En conséquence, préalablement à tout Transfert de Titres, le Fondateur (ci-après le « Cédant ») s'engage à informer les Investisseurs du nombre de Titres qu'il entend Transférer, du prix, des conditions du Transfert et du nom du Cessionnaire, selon les mêmes formes et conditions que la notification prévue à l’article 3.2.1 ci-dessus."

"Le nombre de Titres pouvant être Transféré par chacun des Investisseurs sera déterminé par application de la formule suivante :
Où :
NVM = Nombre de Titres de la Société pouvant être Transférés par chaque Investisseur dans le cadre de son Droit de Cession Conjointe et Proportionnelle.
VMT = Nombre de Titres de la Société objet du projet de Transfert par le Cédant.
VMS = Nombre total de Titres de la Société appartenant aux Investisseurs ayant exercé leur Droit de Cession Conjointe et Proportionnelle et au Cédant."

This term (and the term "Droit de Cession Conjointe Totale" above) appears to relate to these sorts of terms:

"droit de cession forcée" --> "drag-along right"
"droit de sortie proportionnelle" --> "proportional tag-along right"

... which involve obligations and options for minority shareholders, if a majority shareholder finds a purchaser for its shares.

The definition of this right given above in 4.1. appears to me to correspond pretty closely to a "tag-along" right for the Investisseurs - which is also proportional and joint.

Quick google gives this page, for example: https://www.lawinsider.com/clause/proportional-tag-along-rig...
Mpoma
United Kingdom
Local time: 11:44
English translation:joint and proportional tag-along rights
Explanation:
Yes, I believe you're correct. A literal translation does work, but this is better.

Tag-along right (TAR) is a legal concept in corporate law.

Under the concept, if the majority shareholder(s) of an entity sells their stake, the remaining minority shareholders have the right to join the deal and to sell their shares at the same terms and conditions as the majority shareholder(s), and the new owner must purchase those interests as well.
http://en.m.wikipedia.org/wiki/Tag-along_right
Selected response from:

philgoddard
United States
Grading comment
Thanks
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +1joint and proportional tag-along rights
philgoddard
4right to transfer jointly owned and proportional shares
Francois Boye
4Instance of proportionally shared cession rights
Gabriel Ferrero


  

Answers


1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
joint and proportional tag-along rights


Explanation:
Yes, I believe you're correct. A literal translation does work, but this is better.

Tag-along right (TAR) is a legal concept in corporate law.

Under the concept, if the majority shareholder(s) of an entity sells their stake, the remaining minority shareholders have the right to join the deal and to sell their shares at the same terms and conditions as the majority shareholder(s), and the new owner must purchase those interests as well.
http://en.m.wikipedia.org/wiki/Tag-along_right

philgoddard
United States
Native speaker of: English
PRO pts in category: 28
Grading comment
Thanks

Peer comments on this answer (and responses from the answerer)
agree  Adrian MM.: cession > disposal and query: pro rated vs. ranking pari passu https://www.proz.com/kudoz/french-to-english/law-contracts/3...
58 mins
  -> Thanks.
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3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
right to transfer jointly owned and proportional shares


Explanation:
Proportional Share means with respect to each Seller, a percentage that is equal to (x) the number of Ordinary Shares to be sold by such Seller as set out on Exhibit B divided by (y) the aggregate number of Ordinary Shares to be sold by all Sellers.

Source: Lawinsinder

The jointly owned shares are the common shares

What Is Common Stock?
Common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies. This form of equity ownership typically yields higher rates of return long term. However, in the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders, and other debtholders are paid in full. Common stock is reported in the stockholder's equity section of a company's balance sheet.

Source: Investopedia


Francois Boye
United States
Local time: 07:44
Native speaker of: Native in FrenchFrench
PRO pts in category: 36

Peer comments on this answer (and responses from the answerer)
neutral  philgoddard: It's the sale that's joint and proportional, not the shares.
1 hr
  -> Disagree! See the definition of common shares
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6 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
Instance of proportionally shared cession rights


Explanation:
Instance of proportionally shared cession rights.

Gabriel Ferrero
France
Local time: 12:44
Native speaker of: Native in EnglishEnglish
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