Sale of minority stock in California; I own 40% of an s-corp.

This is a discussion on Sale of minority stock in California; I own 40% of an s-corp. within the Business Contracts & Partnerships forum, part of the BUSINESS & FINANCE LAW category; I own 40% of an s-corp. I am negotiating the sale of my stock to the majority share holder. I ...

Consult Your Own Personal Lawyer Now!
Reply  POST NEW QUESTION

 

Thread Tools Search this Thread Rate Thread Display Modes
Old Jan 27th, 2012, 07:22 PM   #1
Junior Member
Country:  
mariet's Flag is: United States
 

mariet's Avatar
 
Join Date: Jan 2012
Posts: 2

Confused Sale of minority stock in California; I own 40% of an s-corp.

I own 40% of an s-corp. I am negotiating the sale of my stock to the majority share holder. I have been offered $300,000 now and $300,000 in 6 months if I sign a stock plege for the installment period. His lawyer is stating that it needs abide by Corporation Code 500, et seq. How can this affect me? Does it give him a way of not paying the second payment for my stock? It appears he is offering 600,000, and that is what I am willing to take...just worried that I am being out-smarted somehow.
mariet is offline   Reply With Quote
Sponsored Links
Our attorneys have years of experience with positive results in the debt reduction / debt relief field. Click here for more information.
Old Jan 27th, 2012, 10:51 PM   #2
Top Level Member
 
AFFA's Avatar
 
Join Date: Dec 2009
Posts: 15,857

Default Re: Sale of minority stock in California; I own 40% of an s-corp.

I wish to inform you that California Corporation Code 500 provides that neither corporation nor any of its subsidiaries shall make any distribution to the corporation's shareholders other then the exception provided in this section. It is not related to the sale of shares or its consideration.

AFF
AFFA is offline   Reply With Quote

Did you find this post helpful? Yes | No
Old Jan 28th, 2012, 07:43 PM   #3
Junior Member
Country:  
mariet's Flag is: United States
 

mariet's Avatar
 
Join Date: Jan 2012
Posts: 2

Default Re: Sale of minority stock in California; I own 40% of an s-corp.

is this true of all the section 500s?
mariet is offline   Reply With Quote

Did you find this post helpful? Yes | No
Reply

Bookmark & Share

This thread has 2 replies and has been viewed 676 times

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:


Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Format Your Messages
Add Forum to Google Toolbar
Forum Jump

Similar Threads

Thread Thread Starter Forum Replies Last Post
My Rights as a minority Shareholder in CA Private Corp. lawlaw Business Contracts & Partnerships 2 Jan 16th, 2014 06:30 PM
The AM Roundup: MF Global, Breyer’s Stock Sale, More WSJ Law Blog Law News 0 Dec 8th, 2011 08:40 AM
invested more than 20k, corp failed to issue stock cert Fedupnfla Debt Collection 2 Nov 7th, 2010 01:39 AM
C-Corp Laws / Minority shareholder rights in a C-Corp Business Unregistered Business Contracts & Partnerships 2 Aug 2nd, 2010 11:39 AM
How to compel Del. Corp. to issue Stock Certificates? Unregistered Business Contracts & Partnerships 1 Jun 25th, 2008 12:23 PM


Our attorneys have years of experience with positive results in the debt reduction / debt relief field. Click here for more information.


All times are GMT -5. The time now is 05:10 PM.