Bedford, TX asked in Securities Law for Louisiana

Q: Found 2 original stock certificates in grandfather’s bank box . Co. is not publically traded. Son now runs the business.

Does the present co. run by son have an obligation to honor stock certificates from 1963? This is a garment mfg. concern in CA that must have done business with my family’s garment mfg. concern in Louisiana and paid in stock shares. The son purchased or inherited the garment concern from father- Issuer of the stock certificates. The son’s family’s mfg. concern dates back to 1935. Around the time my grandfather started his mfg. concern. Son- owner of co. didn’t want to talk on phone. Very abrupt. Told me to put my questions in writing.

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1 Lawyer Answer
D. Alex Onstott
D. Alex Onstott
  • Licensed in Louisiana

A: Securities law is very complex and fact specific. The easiest way to figure out the current status of the shares is to simply contact the company and ask. Without seeing the stock papers, knowing the company's position on the stock, and reviewing the current and historical operating agreements, it is impossible to know exactly whether or not the company must honor them. However, if the value of the shares is potentially substantial, you should contact an experienced securities lawyer to determine your rights, and potential obligations, before contacting anyone else.

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