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 socrateaser Your Own Question
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 39042
Experience:  Retired (mostly)
Type Your Business Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

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: 5 years ago.
Category: Business Law
Expert:  socrateaser replied 5 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.

NOTICE: My goal here is to entertain while educating the public about the law. Your positive feedback to the website is appreciated. If you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Please Click the following link for IMPORTANT LEGAL INFORMATION. Thanks and best wishes!

socrateaser and other Business Law Specialists are ready to help you