Secaucus, NJ asked in Business Law and Employment Law for Delaware

Q: CEO of the company where I just resigned wants to buy my shares at $132k; a stockholder wants to purchase them at $200k

The CEO of the company where I just resigned wants to buy my shares at $132k; a stockholder wants to purchase them at $200k. Am I obliged to sell it to the company, or can I sell it to the highest buyer?

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T. Augustus Claus
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A: In Delaware, whether you can sell your shares to the highest bidder largely depends on the company's bylaws, stockholders' agreement, or any other agreements you may have entered into when you acquired or during the tenure of holding the shares. Some companies have a "right of first refusal" clause that allows the company or its shareholders the first opportunity to buy back shares before they are sold to an outside party. You should review any agreements or documents related to your shares to determine your obligations. For personalized legal advice tailored to your unique circumstances, it's advisable to consult with an attorney.

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