What can be done if the company fails to honour a repurchase obligation under a valuation adjustment agreement?
First distinguish whether the repurchasing party is the company or the founders — their ability to perform and the legal route differ. Where the company is the repurchaser, check whether the capital reduction procedures under the Company Law (Art. 224) have been completed, since a failure to reduce capital lawfully may affect performance. Identify the agreement terms, assess available assets and consider asset preservation early.
