Is it legal to auction off stock in my company?

[.COM_OWNER]

I have been working now for several years on an ecommerce site in which I and one partner hold the entirety of the stock. We have wholesale lines on literally more than a million products and are entering into agreements to manufacture several of our own. The page is almost completed and has pending trademarks on many areas.

Here is my problem, we have invested all of our money. We desperately need investment and I would prefer not to go through someone else to offer the stock. I would like to auction it on a number of online auctions(ie ebay, yahoo!, amazon, etc.).

If I make proper disclosure statements, is this legal???

I would really appreciate any info. any of you might have on this. Thank you very much.

 

[ALawyer]

Read the section on Securities Law IN DEATIL under Business and Financial Law. What you might consider full disclosure is probably not what the SEC would consider full disclosure.

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This is intended as general information only and NOT LEGAL ADVICE. You are not my client, and I have no obligation of any kind to you. To retain a lawyer, go to http://AttorneyPages.com

 

[JETX]

Probably not legal. First, you need to look at the organization of your existing company. Is it a sole-proprietorship (not with a partner), a partnership, or some type of corporation (LLC, S, etc.)?

If NOT a corporation, you have no shares to sell. You would have to sell a percentage of your company to a single buyer (venture capitalist, additional partner, etc.). This sale would be a percentage of the whole, not shares.

Since your post discusses offering to sell stock, I assume you are already incorporated.
If so, then your board of directors certainly has the option of selling shares. This could be a fairly simple issue of new stock, or a much more complicated stock sale. I suggest you check with legal counsel before proceeding... your local state and federal laws are usually pretty definite on what you can and can't do.

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Steve Halket
Judgment Recovery of Houston
[email protected]
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!