Legal Question in Business Law in New York
Hello I have a legal question about gift shares in my private corporation. I am currently 100% owners of all the shares of the company. It is an investment holding company. I would like to gift a percentage of my company to bring in owner partners in exchange that all shareholders pay a weekly shareholder fee of $20. This fee will go towards operating expenses of the company and purchasing assets for the company. I have included this in the stock subscription agreement when shares are being transferred to the new partner. I have also amended this in the By-Laws of the company. Being that there is no free rides for holding shares of the company, if shareholder dues are delinquent for more than 2 weeks that that $20 worth of shares that was gifted to them will be forfeited until they catch up on their share holder dues. If they do not attempt to catch up on their shareholders dues their all shares will be forfeited and a new partner will be brought in and gifted with their shares that has been removed. All of this is fine lined and detailed in the stock transfer agreement and the by-laws to become a partner of the holding company. I wanted to make sure that it is legal for me to implement this before i bring in new partners into the company thanks for your advice.
1 Answer from Attorneys
I assume from your narrative that no attorney was hired to prepare the corp docs to begin with?
You really need to consult with a lawyer in private, or perhaps several, then pick a good fit to work with so then can look into your objectives. This is not something I have ever come across and I too would want to make sure it does no run afoul of corp model codes.
If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
Kind regards,
Frank
www.LanternLegal.com
866-871-8655
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed
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