Legal Question in Business Law in Massachusetts

hello,

my name is Josephin. i am a small business owner.

my company is called Josephin Inc.

i am registered as president, secretary and treasurer of my corp.

so far i have not sold or given any of my 200,000 shares/stocks.

i would like to give 1,000 shares to my 2 loyal advisors and i was wondering- is it as simple as signing the share certificates with a notary?

hoping you can help or direct me to some literature that might help.

thank you in advance,

-Josephin

Owner president of Josephin Inc


Asked on 11/29/09, 2:56 pm

1 Answer from Attorneys

The issue is one of valuation and gift. If you are giving them stock and assuming it is no par stock, the issue is what is the value of the stock and it will be treated as income to the advisors.

If you buy the stock from the corporation and then give it to them, then the stock is a gift.

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Answered on 12/04/09, 4:35 pm


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