LGST 110 Lecture Notes - Lecture 9: Stock Certificate, Intestacy
1 Feb 2015
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You may become a shareholder in two main ways: allotment and issuance of shares - by the company out of shares from transfer of shares - from an existing shareholder to another person. Ex. that shares cannot be offered to the public and that directors must approve each transfer. Right of first refusal is common for private companies on proportionate basis before transfer existing shareholders have right to purchase transferor"s shares similar to pre-emptive rights on an allotment of shares. Have to do offer on percentage bases shareholder. If one want to sell if there are 4 existing. Have the right to buy 25% of the shares from the whole amount that the selling shareholder is selling. Check shareholder"s agreement if there are any restrictions contained in articles or in a shareholders agreement purchase the shares. Shareholders may sign a waiver giving up their right to: for a valid transfer you require: i.
