The company is being sold for 20+ million dollars. She doesn't have a good relationship with the family at this moment. How does she stake her claim to her 4%? She's worried about getting cheated out of what she worked very hard for many years ago. Hiring a lawyer isn't feasible due to her finanacial condition.
2007-01-08 06:54:29 · 4 answers · asked by Karen C 1 in Business & Finance ➔ Corporations
Her claim is already staked with her certificate(s). If the buyer(s) want her 4%, they will have to deal with her directly. She should contact the buyers to make sure they are aware that she owns 4%. If her family has engaged in some fraud with her certificates, then you will have no problem finding a lawyer who will take the case on a contingency basis. BTW, it's possible that the company is an S corp (flow-through, for tax purposes), which would mean no dividends.
2007-01-08 07:21:27 · answer #1 · answered by morlock825 4 · 0⤊ 0⤋
A change in company ownership does not mean that she is no longer a minority stock holder. She should still receive her dividends however, she is not entitled to 4% of the 20+ million that the company is being sold for. She needs to make sure she has the certificates. If she is in financial need she can attempt to sell her shares.
2007-01-08 07:06:55 · answer #2 · answered by brett.brown 3 · 0⤊ 0⤋
She needs to find out if the company is being 100% bought by the other company or just a 50.1% controlling ownership. What kind of "ownership" does she have? Is it common or preferred stock? Is it Senior Preferred Debt? Not all of "ownership" will have any rights under a buyout agreement. If her ownership is really worth $800,000.00 than she should look into a lawyer so she won't get into problems with the IRS or nit get a chance to sell her shares at Fair Market Value.
2007-01-08 08:12:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
This is rather intriguing the value suggests there is a significant revenue associated with the company. Is she not receiving her dividends already?
If she owns 4% she owns 4% if they are buying the company 100% they will have to buy her share aswell. If they are buying other peoples shares then she will still own her proportion of the company and entitled to her share of the profits. Which it sounds like she is owed in any case.
2007-01-08 07:00:19 · answer #4 · answered by Bohdisatva 3 · 0⤊ 0⤋