November 12, 2008
Can we add to our articles of incorporation, that we can only sell shares to others with board approval?
Can you answer UCLARocks's question about Incorporation?:
Two out of three shareholders in a non-public California corporation want to ammend our articles of incorporation to make it so if anyone wants to sell their shares to someone who is not already a shareholder, they would need board approval. Can we do this with a majority vote, or do we need all shareholder's consent.
Limited Liability Corp
Two out of three shareholders in a non-public California corporation want to ammend our articles of incorporation to make it so if anyone wants to sell their shares to someone who is not already a shareholder, they would need board approval. Can we do this with a majority vote, or do we need all shareholder's consent.
Limited Liability Corp
Filed under More Incorporation Answers by admin
Comments on Can we add to our articles of incorporation, that we can only sell shares to others with board approval? »
Its your company, you can make the articles of incorporation read whatever you want. All you would need is a majority vote to pass anything. Thats why the 51% is such a big deal for business owners. And bascially, that may not be a bad idea. If you sell shares, the others want first chance to buy them, or at least they want someone who understands your business and who will buy the stock to have an active interest in it. Good luck and I wish you success.