How do I completely transfer stock from an old business partner back to my own?
I have the severence papers signed but need the stock to show I now own it 100%. How do I go about getting this confirmed and transfer the stock to me?
Assuming that there are only the two of you, and there is no shareholders agreement, you would need to have a meeting of the shareholders to approve the transfer and a written assignment of the shares that indicates the consideration (what you are paying in cash or kind) for the shares. Some states permit a written consent signed by the shareholders in lieu of an actual meeting. Finally, you need to retrieve your partners share certificate and mark it cancelled and issue a new certificate for the shares in your name. All of this should be properly documented in the corporate records. You should consult an attorney
familiar with these transactions to prepare the proper documentation.
Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.