Business Question
Learning Goal: I’m working on a business writing question and need an explanation and answer to help me learn.
Description
Assume for purposes of this assignment that you have been asked to invest $50,000 in a new business. The other investors will be the executive officers and, will invest $150,000. You will be a 25% owner and be employed as an Assistant Vice President. All four investors will constitute the Board of Directors.
You understand that it is very difficult to sell a minority interest in a closely held business to a third party. You also do not want the other three owners to take advantage of their position of controlling the Board of Directors. You have expressed these concerns to the other three owners, and they have asked you to propose the general terms of a shareholders’ agreement that will address your concerns.
Your task is to prepare an essay (500-750 words) that addresses the following questions:
- When should you be able to sell your shares, and when should the company or other owners be required to buy your shares?
- What should happen if a shareholder wants to sell shares to a third party?
- Given that there is no market for the shares of a closely held corporation, how should shares be priced when a sale is triggered?
- What decisions of the Board of Directors, if any, should require unanimous consent?
Note: The purpose of this assignment is not to test your ability to come up with the “right answer” to these questions. Rather, the purpose is have you demonstrate your understanding of the general framework of shareholder agreements and how they are used to address the matters of unique concern that arise in closely held corporations.
We've got everything to become your favourite writing service
Money back guarantee
Your money is safe. Even if we fail to satisfy your expectations, you can always request a refund and get your money back.
Confidentiality
We don’t share your private information with anyone. What happens on our website stays on our website.
Our service is legit
We provide you with a sample paper on the topic you need, and this kind of academic assistance is perfectly legitimate.
Get a plagiarism-free paper
We check every paper with our plagiarism-detection software, so you get a unique paper written for your particular purposes.
We can help with urgent tasks
Need a paper tomorrow? We can write it even while you’re sleeping. Place an order now and get your paper in 8 hours.
Pay a fair price
Our prices depend on urgency. If you want a cheap essay, place your order in advance. Our prices start from $11 per page.