Legal Question in Investment Law in New Jersey

I work for Allied Van Lines and it has structured its company by giving its franchisees (me) stock ownership in the company. But after carefully snooping around i noticed the following language on the stock:

NOTE: Restrictions apply to ownership of this stock. Only franchisees and employees of Allied Van Lines can own this stock. In the event of a franchise or employment termination, the stock must first be offered to the Allied Board for purchase.

Is this restriction valid is my question and if not what can i do in in regards to this issue.?

Thanks, Qwame Nkromah

Asked on 5/23/11, 3:11 pm

1 Answer from Attorneys

Roman Fichman Esq. Law Practice of Roman Fichman Esq.

Restrictions on the face of a stock certificate are perfectly legal. In general, you need to make sure that the restriction on the stock certificate matches the restriction(s) that may exist on the agreements you signed with AVN. To have this question answered properly, you should retain an attorney to review the franchise agreements you entered into.

Roman R. Fichman, Esq. │ @TheLegalist

email: Info (at) TheLegalist (dot) com

t e l : 2 1 2 -- 3 3 7 -- 9 8 3 7

Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

Read more
Answered on 5/23/11, 3:22 pm

Related Questions & Answers

More Investment Law questions and answers in New Jersey