Form with which a corporation advises that it has resolved that some shareholders shall be required to give the corporation the opportunity to purchase shares before selling them to another.
The Kentucky Corporate Right of First Refusal (ROAR) is a legal provision that grants a corporation the first opportunity to purchase a particular asset or investment opportunity before it is offered to external parties. It is a commonly used mechanism to protect the interests of the corporation and its shareholders by ensuring that they have the option to acquire any new shares, securities, real estate, or other assets being sold or transferred. Corporate resolutions refer to the formal decisions made by a corporation's board of directors or shareholders regarding specific matters. In the context of the Kentucky Corporate Right of First Refusal, a corporate resolution is typically adopted to establish the company's intention to exercise its ROAR. This resolution outlines the terms and conditions under which the corporation can exercise its right, including the price, timing, and any other relevant provisions. There are different types of Kentucky Corporate ROAR, depending on the specific asset or opportunity covered by the provision. Some common types include: 1. Share ROAR: This type of ROAR allows a corporation to purchase additional shares of its own stock before the shares are offered to external investors. 2. Real Estate ROAR: This type of ROAR grants the corporation the option to acquire a particular piece of real estate before it is sold to third parties. 3. Securities ROAR: This type of ROAR gives the corporation the right to purchase new securities or investment opportunities before other investors. 4. Asset ROAR: This type of ROAR allows the corporation to acquire specific assets, such as equipment, intellectual property, or other tangible or intangible property, before they are transferred to outside parties. Kentucky Corporate Roars are an important tool for protecting the interests of corporations and their shareholders. They provide a safeguard against unwanted dilution of ownership, maintain control over valuable assets, and allow companies to strategically manage their growth and investment opportunities. It is essential for corporations to carefully draft and adopt corporate resolutions to properly exercise their Roars, ensuring compliance with relevant laws and regulations.
