Corporate Buy-out: Forced to Sell
Corporate Buy-out - Selling Shares - Forced to Sell - Buying out Shareholders - Buying into a Company
Contact Neufeld Legal PC at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com
Being forced out of a business corporation that you invested in and/or worked hard to elevate its present financial position is never a good situation, and yet such drastic action on the part of your fellow shareholders is not uncommon. For the reality is that when your fellow shareholders take such action, whether or not it is permissible, you need to take appropriate responsive action, for which the services of an experienced lawyer can be particularly beneficial.
The fact is that even though we would like that all business corporations remain cohesive and the shareholders will not seek to eliminate their fellow shareholders from the company, the stark reality is that your fellow shareholders are people who are driven by their own psychological beliefs as to your remaining a shareholder in the company, whether or not their beliefs are rationale and/or legal. For irrespective of the rationality and/or legality of their beliefs and actions, you need to deal with them, otherwise you risk losing your stake in the company and/or having it seriously undervalued when you are forced out of the corporation.
There are a range of possibilities should your fellow shareholders seek to force you out, from negotiating a move favorable buy-out, reversing the force out such that you are buying out the shareholders that initiated the force out, forcing the dissolution of the corporation, etc. Each of these legal strategies tend to be quite complex to negotiated and implement, such that the involvement of an experienced lawyer on your behalf is to your considerable advantage and should not be underestimated given the financial impact of not attaining the best possible resolution to a corporate force-out.
Although the preference is for a well-planned corporate buy-out process, there are invariably circumstances that demand immediate action to effectuate a corporate buy-out, such that the ongoing business might be preserved and the shareholders' stake in the company is appropriately dealt with, including upon the business owner's death, permanent disability / terminal illness, necessitated or forced departure, or the business' financial faltering and/or collapse.
For knowledgeable and experienced legal representation when initiating, or being subjected to, a corporate buy-out, contact corporate business lawyer Christopher Neufeld at Chris@NeufeldLegal.com or 403-400-4092 / 905-616-8864.
