In the sale of a business through a stock transfer, care should be taken to determine the actual ownership of the stock to be sold. Everyone having an interest in it should be made a party to the agreement. A buyer acquiring a business through a stock acquisition takes the business subject to both the known and unknown liabilities of the seller. Accordingly, the buyer should seek protection through the inclusion of detailed seller's warranties as to the corporation's financial condition.
Travis Texas Right of First Refusal to Purchase All Shares of Corporation from Sole Shareholder, also known as the "Travis Texas Right of First Refusal," is a legal provision that grants a sole shareholder the option to sell their shares of a corporation before they can be sold to a third party. This right ensures that the shareholder has the first opportunity to purchase all the shares being offered for sale at the same terms and conditions as those presented by the potential third-party buyer. This type of right is commonly found in shareholders' agreements and corporate bylaws, aiming to protect the interests of the existing shareholder(s) and maintain control over the ownership structure of the corporation. It effectively gives the sole shareholder a preemptive right, allowing them to maintain or increase their ownership stake in the company by matching the price and conditions offered by the third party. By having the Travis Texas Right of First Refusal, the sole shareholder can prevent external individuals or entities from acquiring a controlling or significant interest in the corporation without their consent. It is a safeguard that enables the shareholder to retain control over important decisions, voting rights, and corporate governance. There are different variations and types of the Travis Texas Right of First Refusal, including: 1. Non-transferable Right of First Refusal: This type restricts the shareholder's right to transfer or assign their right of first refusal to another party. It ensures that only the original shareholder can exercise the right. 2. Transferable Right of First Refusal: In contrast to the non-transferable right, the shareholder has the option to transfer or assign their right to another party. This may provide flexibility if the original shareholder is not interested in exercising their right, allowing them to sell the right to someone else who wishes to acquire shares. 3. Partial Right of First Refusal: This variation applies when the corporation decides to sell only a portion of the shares held by the sole shareholder. The shareholder has the right to purchase the proportionate number of shares offered for sale based on their current ownership percentage. 4. Unlimited Right of First Refusal: With this type of right, the shareholder has the opportunity to purchase all the shares being sold, regardless of the number or percentage of shares available. This kind of right offers the maximum level of protection and control to the sole shareholder. In summary, the Travis Texas Right of First Refusal to Purchase All Shares of Corporation from Sole Shareholder grants the shareholder the first option to buy any shares being sold by matching the price and conditions offered by a third party. Its variations cater to different circumstances and provide flexibility, thereby ensuring that the shareholder's interests and control over the corporation are preserved.Travis Texas Right of First Refusal to Purchase All Shares of Corporation from Sole Shareholder, also known as the "Travis Texas Right of First Refusal," is a legal provision that grants a sole shareholder the option to sell their shares of a corporation before they can be sold to a third party. This right ensures that the shareholder has the first opportunity to purchase all the shares being offered for sale at the same terms and conditions as those presented by the potential third-party buyer. This type of right is commonly found in shareholders' agreements and corporate bylaws, aiming to protect the interests of the existing shareholder(s) and maintain control over the ownership structure of the corporation. It effectively gives the sole shareholder a preemptive right, allowing them to maintain or increase their ownership stake in the company by matching the price and conditions offered by the third party. By having the Travis Texas Right of First Refusal, the sole shareholder can prevent external individuals or entities from acquiring a controlling or significant interest in the corporation without their consent. It is a safeguard that enables the shareholder to retain control over important decisions, voting rights, and corporate governance. There are different variations and types of the Travis Texas Right of First Refusal, including: 1. Non-transferable Right of First Refusal: This type restricts the shareholder's right to transfer or assign their right of first refusal to another party. It ensures that only the original shareholder can exercise the right. 2. Transferable Right of First Refusal: In contrast to the non-transferable right, the shareholder has the option to transfer or assign their right to another party. This may provide flexibility if the original shareholder is not interested in exercising their right, allowing them to sell the right to someone else who wishes to acquire shares. 3. Partial Right of First Refusal: This variation applies when the corporation decides to sell only a portion of the shares held by the sole shareholder. The shareholder has the right to purchase the proportionate number of shares offered for sale based on their current ownership percentage. 4. Unlimited Right of First Refusal: With this type of right, the shareholder has the opportunity to purchase all the shares being sold, regardless of the number or percentage of shares available. This kind of right offers the maximum level of protection and control to the sole shareholder. In summary, the Travis Texas Right of First Refusal to Purchase All Shares of Corporation from Sole Shareholder grants the shareholder the first option to buy any shares being sold by matching the price and conditions offered by a third party. Its variations cater to different circumstances and provide flexibility, thereby ensuring that the shareholder's interests and control over the corporation are preserved.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
