This ad will close in
Question added to topic Legal Basics For StartupsSeptember 4, 2007

How do I completely transfer stock from an old business partner back to my own?

I recently severed my business connection with my origional business partner. We had 50/50 stock split. However, stocks were never issued. How do I handle this? Do I need to get the stocks issued or what do I do to be sure I now own all 100% of them?

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?
You have not indicated if you and your old business partner are the only shareholders of this corporation or if there is a shareholder agreement that contains restrictions on, or procedures for, transfer.

Assuming that there are only the two of you, and there is no shareholder’s 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 partner’s 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.

0 Comments. Post Yours.

About ASK ENTREPRENEUR

Ask Entrepreneur is a question-and-answer forum for and by the Entrepreneur.com community. Send in your burning business question, or comment on someone else's now. Have a Question? Ask Now

Topics (over 1000+ answers)

Don’t see a topic? Suggest One

Ask Entrepreneur Q&A Hangouts

Google + Hangout With Shark Tank
Google + Hangout With Jason Falls
Google + Hangout With Angela Jia Kim
Google + Hangout With Grant Cardone