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FLCORPLAWYER
FLCORPLAWYER, Attorney
Category: Business Law
Satisfied Customers: 4634
Experience:  23 Years business & securities law, NY and FL bars. SEC all states.
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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: 7 years ago.
Category: Business Law
Expert:  Infolawyer replied 7 years ago.
What specifically do you want to know and accomplish?
Customer: replied 7 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 7 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 7 years ago.
I'll wait for your response.
Expert:  Infolawyer replied 7 years ago.
If a colleague can help he will take over from here.
Customer: replied 7 years ago.
I'll be expecting a response from your colleague.
Expert:  Infolawyer replied 7 years ago.
ok
Customer: replied 7 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 7 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: 4634
Experience: 23 Years business & securities law, NY and FL bars. SEC all states.
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