Friday, 11 July 2014

My dad is one of the shareholder of a private limited company. He is currently ill and wish to exit the business. His partner offer a exit o...

Question

My dad is one of the shareholder of a private limited company. He is currently ill and wish to exit the business. His partner offer a exit offer but we deem too low. How can a lawyer help in such cases to negotiate for a better offer? Whats our rights and what happens if we cannot agree to the exit offer?



Answer

Get the Operating Agreement of the company. Your father should have a copy. The Agreement should dictate how shares are valuated in a first right of refusal or buyout situation. If the Agreement is silent on this matter, an attorney can walk you through the proper steps in getting a full and fair accounting under the laws of Alabama's Business Entites Code.



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