Q: What are my chances to force a publicly traded company to lift the restrictions on stock in the court I have inherited
I am about to inherit restricted stocks from my father who was an insider in the company. I dont know what the restrictions are exactly yet, but whatever they are, can I and how likely can I succeed to force the company to lift those restrictions in the court?
Do they need to have justifiable reasons not to lift those restrictions? Or are they allowed to decide whatever they want to?
A:
Hello,
That questions is difficult to answer. If your Dad died while working at the company, perhaps the stock will come restriction free. Usually restrictions are in place to prevent insider trading, so if there is no chance at insider trading anymore, they may lift them. Other restrictions can be put in place so ensure the employee doesn't get the stock then find a new job elsewhere. I am sure there is some company policy on how to handle restricted stock of a decedent. A Court will not remove those restrictions just because the person died, you would have to show a compelling reason to do so.
I hope this helps.
Wes
Nina Whitehurst agrees with this answer
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