In agreements drawn up for transactions, certain rights and obligations pertain to “Affiliates” of the parties to the arrangement. Some of the pertinent provisions include:
(a) The parties may freely transfer their shares or rights to affiliates, without being subject to lock-ins, consent requirements or other transfer restrictions;
(b) The parties may subscribe to further issuances of shares through affiliates; and
(c) The parties may be restricted from engaging in competing businesses through affiliates.
Source: Barandbench
