Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
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?