Employee / Share Holder

[williep86]

I have been asked to resign from our 5 member board of directors ( all equal partners ) the company has agreed to buy my stock back based on the latest valuation we all signed off on. What I was unaware of was the plans to remove me. The valuation is well below market value, and arguably below asset value. The Company has first rights to buy my stock. Anything I can do?

 

[loku]

Right of refusal

If you signed a valid agreement to sell the company your stock at the latest valuation price, then you are bound by the agreement. However, if the company simply offered to pay that amount and you have not agreed with them to sell, then you can try and sell the stock for whatever price you want. The company right of first refusal, unless it is written in terms specifying otherwise, is just a right to purchase the stock at a price you offer to a buyer. If they do not exercise the right, then you can sell to the other buyer.