Lock-Up Agreement Po Polsku

A lock-up agreement, also known as a lock-in agreement, is a common term used in the world of finance. It refers to an agreement between the company’s shareholders, directors, and executives that restricts them from selling their shares for a certain period after an initial public offering (IPO) or other significant corporate event.

The primary purpose of a lock-up agreement is to provide stability to the company’s stock price. Without a lock-up agreement, insiders could sell their shares immediately after the IPO, flooding the market and potentially driving down the stock price. This could harm the company’s reputation and make it difficult for future fundraising efforts.

In Poland, a lock-up agreement is called “umowa blokowania”. This type of agreement is especially important in Poland because the country has a growing IPO market and a rapidly developing economy. Polish companies that go public often need to raise capital to expand their business operations, and a lock-up agreement can help ensure that investors have confidence in the company’s stability and future prospects.

The duration of a lock-up agreement varies depending on the company, but it typically ranges from six months to two years. During this time, insiders are prohibited from selling their shares. However, there are exceptions to this rule. For example, if an insider needs to sell their shares to address a financial emergency or cover a tax liability, they may be granted permission to sell, but only with the company’s approval.

The terms of a lock-up agreement are negotiated between the company and its insiders. Typically, the agreement includes a provision that allows insiders to gradually sell their shares over time after the lock-up period expires. This helps prevent a sudden flood of shares hitting the market and can help maintain a stable stock price.

In summary, a lock-up agreement is an essential tool for ensuring the stability of a company’s stock price after an IPO or other significant corporate event. In Poland, it is known as “umowa blokowania” and is an important consideration for companies looking to go public or expand their operations. By restricting insiders from selling their shares for a set period, a lock-up agreement can help build investor confidence and ensure the long-term success of the company.

22 juni 2022

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