Intro and stock question

Discussion in 'Growing and Managing a Business' started by Jimmer, Feb 15, 2012.

  1. Jimmer

    Jimmer
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    Our corporation has 300,000 shares. I have 200,000 and CW owns 100,000. We want to have an agreement that will protect one in case of the death or incapacitation of the other. I presently have cancer and don't qualify for keyman insurance. The work that our corporation is doing is important to us and we want it to continue unimpeded. I thought of making the shares of the the dead or incapacitated shareholder non voting but that it seems is not legal. Any ideas on how to word an agreement like this? We are in the process of raising money so this will be important to our investors.
    Thanks.

    Jimmer
     
  2. Shahrier

    Shahrier
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    Hi Jimmer and welcome to the forums. I am not an expert on stocks and such, although you may get some better answers if you posted this in the General Business Advice and Questions section. If you need any more help, feel free to ask me :)
     
  3. Business Attorney

    Business Attorney
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    You don't say where you are located, and the laws can vary quite a bit depending on the governing jurisdiction.

    First, I would be surprised if non-voting stock was not permitted, but I'll take your word that is the case. However, before you think about other solutions, I strongly suggest that you make certain you are correct on the non-voting stock.

    When non-voting stock is not an option, two similar but slightly different solutions are establishing a voting trust or giving an irrevocable proxy.

    Talk to a lawyer in your jurisdiction who is familiar with corporate law.
     
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