Three partners and myself started a small internet newspaper. We are growing and given the new Web 2.0 climate, one of my original partners (who no longers works with us) owns 15% of the company and is looking to sell a part of his stock (5% or so). Can he do this legally given we are a private California company without my permission (majority shareholder)? I would love to buy this stock back, but he is asking way too high a price.
2006-10-23 19:05:11 · 5 answers · asked by Anonymous in Business & Finance ➔ Corporations
A private corporation is different from a public corporation. As a privately owned corporation, transfer of shares is restricted under a samll corporation act. The purpose of the Act is to protect the interest the other partners. No partners can sell their share without the others approval. On the other hand, you cannot unreasonably restrict him from selling his share either. If you think he asked too high on his shares, I would suggest you get an appraisal fram a Chartered Accountant or a Chartered Business Valuator. In the US, you can have it done by a CPA or CBA (Certified Business Appraiser).
2006-10-23 19:43:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If there's a legally binded contract stating that he can't sell his stocks without the consent of the major shareholder, then yes, he can.
2006-10-23 19:24:52 · answer #2 · answered by c00kies 5 · 0⤊ 0⤋
It depends on how the original partnership agreement was written. If there was no written agreement between you about how this type of matter would be handled, then you have no way to force or restrict the sale.
2006-10-23 19:13:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
visit a lawyer. i do unlike them the two, yet you would be able to desire to make certain that the prospectives which you provide - the two written and oral - adjust to the regulation. you will get some purpose to purchase agreements that tie the two events to an contract to purchase as quickly as the enterprise is generic and inventory is a actuality. that would help in getting a private loan to commence the enterprise.
2016-10-02 21:44:23 · answer #4 · answered by ? 4 · 0⤊ 0⤋
I believe he will have to approach you first and give you the option to buy the stock first before selling it to someone Else
2006-10-23 20:14:56 · answer #5 · answered by d gada 1 · 0⤊ 0⤋