I want to sell my interest in a small corporation. Can I do so. Can my sale be stopped by the board? Does the board need to approve of my buyer?
None of these fact-specific questions can be answered properly on AVVO. If the answers are not contained in the corporate charter, by-laws or operating rules, you will have to hire a lawyer to help you answer this tax-related question.
A lawyer would need to analyze all relevant corporate documents to provide a definitive answer to this question.
Generally, if there are no share transfer restrictions in the articles of incorporation, bylaws, shareholder agreement, stock purchase agreement, etc., that a shareholder may transfer his or her shares.
Answers and exchanges on Avvo do not constitute legal advice and do not establish an attorney-client relationship.
The by-laws of teh corp control. Do you have a copy of them? A careful analysis will tell you whether there are transfer restrictions. Moreover, if there are stock certificates issued to each, often times on the back of the certificate there is routinely printed restriction language. Check this all out with CA corporate legal counsel BEFORE approaching any sale transaction.
This commentary does not result in any attorney/client relationship nor constitute legal advice as to a particular fact situation or status of a reader. Consult and retain legal counsel in the State of Michigan for pursuit of such a relationship.
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