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In a small C-Corp with just 2 shareholders, can the

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corporation buy out one shareholder...
In a small C-Corp with just 2 shareholders, can the corporation buy out one shareholder (buying back shares like the big companies) or would I have to buy out the other shareholder with my own funds?
Submitted: 1 year ago.Category: Business Law
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12/15/2015
Business Lawyer: J. Warren, Attorney replied 1 year ago
J. Warren
J. Warren, Attorney
Category: Business Law
Satisfied Customers: 2,249
Experience: Experience in general business transaction and formation matters.
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Hello my name is ***** ***** I look forward to providing you information. Please note:

(1) this is general information and is not legal advice. I never propose a specific course of action. There is no attorney-client relationship or privilege that is formed when communicating to an expert on this site. The site repeats this disclaimer numerous times. By continuing, you confirm that you understand and agree to these terms; and

(2) there may be a slight delay between your follow ups and my reply while I am typing out my answer.

Yes the corporation may purchase the shares of shareholder. This is called a redemption of stock. Here is a link to a sample redemption agreement https://www.leaplaw.com/pubSearch/preview/redemption_agmt.pdf

All my best & encouragement.

Thank you for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. Please note that you are asked to rate my courtesy and professionalism, and not whether the answer supports your legal position. I only receive credit when rated “ok” (3 stars) or higher. If for any reason you feel that a low rating is appropriate, please first give me the opportunity to address your concerns by clicking the "reply" tab.

All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you.

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