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socrateaser
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 37966
Experience:  Retired (mostly)
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Were drafting a corporate structure document with our attorney.

Resolved Question:

We're drafting a corporate structure document with our attorney.

We currently have an advisor who is receiving 17% of the company stocks.

We want to put something in the document that will prevent someone unwanted to join our company in case our advisor sells his stocks.

I'm seeking for ideas how we can accomplish this? what should we include?
Submitted: 4 years ago.
Category: Business Law
Expert:  socrateaser replied 4 years ago.
Close and professional corporations typically use a right of first refusal and a share restriction on the face of each shares, as provided for in the articles of incorporation and bylaws, under which a shareholder cannot sell shares so as to increase the number of shareholders beyond 35, and to provide the corporation with the right to repurchase the shares for fair market value at the time that the shareholder provides notice of the intent to sell.

This is fairly standard language that your attorney can include in your governing documents.

Hope this helps.

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