North Carolina Corporate Right of First Refusal - Corporate Resolutions

• Category: Corporations - Minutes and Resolutions - Stock
• State: Multi-State
• Control #: US-0025-CR
• Format: Word; Rich Text

Description

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.

North Carolina Corporate Right of First Refusal (ROAR) is a legal provision that grants a corporation the option to purchase a specific asset or business opportunity before it is offered to any other party. This right is typically included in a corporate resolution, which is a formal decision made by a corporation's board of directors or shareholders to authorize a specific action or transaction. The ROAR is designed to protect the interests of the corporation by ensuring that it has the first opportunity to acquire assets or participate in business ventures that may be beneficial to its operations or strategic goals. This provision is commonly applied in situations such as the sale or transfer of shares of stock, real estate transactions, or the leasing of property. If a shareholder or director intends to sell their shares of stock in the corporation, the ROAR grants the corporation the right to purchase those shares at the same terms and conditions offered by the potential buyer. This allows the corporation to maintain control over its ownership structure and prevent outside parties from acquiring a stake in the company without its consent. In the case of real estate transactions, the ROAR allows the corporation to match the terms and conditions of a potential buyer's offer before the property is sold to them. This provides the corporation with the opportunity to acquire properties that align with its business needs, whether it is to expand its operations or consolidate its assets. Additionally, the ROAR can also be applied to business opportunities or contracts. For instance, if a business opportunity arises that is closely related to the corporation's industry or core competencies, the ROAR ensures that the corporation has the first right to negotiate and enter into that opportunity before it is presented to other entities. There are no specific types of North Carolina Corporate Right of First Refusal. The application and implementation of this provision may vary depending on the specific circumstances and needs of each corporation. However, regardless of the specific type, the core purpose of the ROAR is to safeguard the interests of the corporation and allow it to exercise its preemptive right in acquiring assets, business opportunities, or shares of stock. Overall, the North Carolina Corporate Right of First Refusal — Corporate Resolutions serve as important legal tools for corporations in protecting their investment and maintaining their strategic advantage in the market.