Section 7 Sale of Stock

• Library: Bus Trans 2005

The sale of a corporation’s stock is the simplest and most straightforward method of partially or completely changing business ownership. No corporate action is required. Unless otherwise prohibited or restricted by a buy-sell, restrictive stock, or similar agreement, the decision to sell a corporation’s stock is simply an individual decision to be made by the selling shareholder. Of course, a buyer desiring to purchase all of a corporation’s outstanding stock must obtain an agreement to sell from each individual shareholder. Subject to the tender offer rules in the Missouri Takeover Bid Disclosure Act, §§ 409.500–409.566, RSMo 2000, the buyer potentially must negotiate separate agreements with each shareholder, with each agreement conceivably having different terms, conditions, and consideration. The...