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Private stock holderI own private stock, via through a PPM. The Shareholders Agreement states, if I sell my shares, the Compnay has "right of first refusal. That said, I am entilted to sell it to another investor, however I am afraid, they will do whatever they can do, to obstuct my sale. Although the company is doing very well. Is there anything I can do, so they may not stop my sale. Venture Capital Groups, that I have spoken to, tell me, the "rights of first refusal" is an obstacle, in selling my shares. Is ther anything I can do, to prevent the company from making it difficult for me? Thank you. Attorney answers (2)
Reputation Level 14
Answered over 2 years ago.
Foreclosure Attorney in Jacksonville, FL.
There is not much you can do about it. It will not be difficult to sell your stock, but what the venture capital groups are referring to is that a future purchaser may not be willing to agree to the terms that you are bound by.
Many shareholders agreements or restricted stock agreements make a future purchase bound by the same terms as you are. I would suggest that you have the terms reviewed by a business lawyer and see how restrictive they actually are. 1 person marked this answer as good
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I'm not sure what you mean by "make it difficult." You have to first offer the shares to the company and it would then a certain time period in which to purchase them. Otherwise, you should be free to then sell them to a third party. This is very common. All of your rights and the company’s are in the Shareholders Agreement. The company cannot do anything more than what is in the Agreement (subject to state law).
If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you. The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied. Related Questions3 Attorney answers: 
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