California  |  Securities Law

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5/03/11, 8:39 pm

Legal Question

A company with one class of stock and 75 shares of stock wants to raise money by offering to sell 25 shares to current existing shareholders. The board wants to propose this to the shareholders for vote, stating that the company will announce that 25 shares are for sale, and invite bids from the shareholders for the # and $/sh. Upon receipt of the bids, the company will sell to the highest bidder. Is this legal in California and under federal securities laws?


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