How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask FLCORPLAWYER Your Own Question

FLCORPLAWYER
FLCORPLAWYER, Attorney
Category: Business Law
Satisfied Customers: 4626
Experience:  23 Years business & securities law, NY and FL bars. SEC all states.
13539925
Type Your Business Law Question Here...
FLCORPLAWYER is online now
A new question is answered every 9 seconds

Can a founder of a private corporation sell some of their private

Resolved Question:

Can a founder of a private corporation sell some of their private common stock?
Submitted: 4 years ago.
Category: Business Law
Expert:  INFOLAWYER replied 4 years ago.
What specifically do you want to know and accomplish?
Customer: replied 4 years ago.
A co-founder is considering a sale of a small portion of the common stock that he holds. The person purchasing the stock would be another private individual that is not associated with the Company. Can the co-founder negotiate a quantity of common shares and a price per share that is independent of the Series-A preferred stock offering that is being made by the Company to potential angel investors? The co-founder would report the number of shares and the price so that other stockholders would be kept apprised of the sale. Are there any restrictions or legal issues with this sale of private stock?
Expert:  INFOLAWYER replied 4 years ago.
I am going to see if a colleague can help you further as a state law may apply here that I am less familiar with.
Customer: replied 4 years ago.
I'll wait for your response.
Expert:  INFOLAWYER replied 4 years ago.
If a colleague can help he will take over from here.
Customer: replied 4 years ago.
I'll be expecting a response from your colleague.
Expert:  INFOLAWYER replied 4 years ago.
ok
Customer: replied 4 years ago.

Can a founder of a private California corporation sell some of their private common stock?

 

A co-founder is considering a sale of a small portion of the common stock that he holds. The person purchasing the stock would be another private individual that is not associated with the Company. Can the co-founder negotiate a quantity of common shares and a price per share that is independent of the Series-A preferred stock offering that is being made by the Company to potential angel investors? The co-founder would report the number of shares and the price so that other stockholders would be kept apprised of the sale. Are there any restrictions or legal issues with this sale of private stock?

Expert:  FLCORPLAWYER replied 4 years ago.
Common stock of a closely held private company can be sold in any manner so long as the sale is at or above par value, if a par value is declared on the shares. While it is desirable to report this share sale to potential investors in the series A preferred, it is not necessary unless the dilution or voting control of the A preferred is changed as a result of the sale.
FLCORPLAWYER, Attorney
Category: Business Law
Satisfied Customers: 4626
Experience: 23 Years business & securities law, NY and FL bars. SEC all states.
FLCORPLAWYER and 2 other Business Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA
 
 
 

Related Business Law Questions