The shot-gun clause (also called the compulsory buy-sell provision) is not found in all shareholders agreements. It is commonly used as a drastic exit strategy in very closely-held corporations e.g. with 2 to 4 shareholders. The purpose of the clause is to permit one shareholder (or group of shareholders) to buy out all the shares of the other (notified) shareholders. The offer has to specify that it is a shot-gun offer, and the targeted shareholder can either accept the sale of their shares or purchase all the shares of the triggering shareholder at the same price as the shot gun offer. The result is that one shareholder or the other will depart from the corporation.