# kaal:claim:3017612-029

**Claim.** Standstill agreements entrench management and can lead a company into stagnation, so they may operate prejudicially on shareholders' property rights.

**Type.** failure  **Support.** argued

**Holds when.**

- standstill agreements restricting voting

**Source quote.**

> These agreements tend to entrench management and can lead to stagnation for the company, so they sometimes "operate prejudicially upon" shareholders' property rights.

**From.** Wulf A. Kaal, *Shareholder Agreements - National Report of the United States of America* (2017), III.4 Shareholders' Agreements in pre-insolvency situation, page 14

**Cite as.** Wulf A. Kaal, Shareholder Agreements - National Report of the United States of America (2017). SSRN: https://ssrn.com/abstract=3017612

**Verify.** sha256 of source PDF `33821db406f92efbe1698fbaed37687595c13b7ce5463b4a879df679fd4af1ac` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Shareholder%20Agreements%20-%20National%20Report%20of%20the%20United%20States%20of%20America.pdf

**Failure mode.** management-entrenchment-through-standstill  (family: agency-cost-and-managerial-opportunism)

**Topics.** institutional-design

**Keywords.** standstill-agreements, entrenchment, stagnation, property-rights

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