Assented stock refers to shares that an owner has deposited with a third party based on an agreement. In this arrangement, the owner voluntarily accepts changes in the corporation's securities. This type of stock is considered a security provided by the owner during corporate transactions, such as mergers or acquisitions.
Assented stock is commonly used in corporate law, particularly during mergers and acquisitions. It plays a crucial role in determining the value of shares during negotiations. Legal professionals may reference this term when discussing shareholder agreements or corporate restructuring. Users can manage related documents using legal templates available through services like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: During a merger, a company offers to buy shares from its shareholders. Those who agree to the terms and deposit their shares with a designated third party hold assented stock.
Example 2: A corporation proposes a new class of stock, and shareholders who accept the change deposit their existing shares in accordance with the new agreement. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| California | Specific regulations on shareholder agreements may apply. |
| Delaware | Known for corporate law flexibility; may have unique provisions for assented stock. |
| New York | Additional disclosure requirements may be mandated for corporate transactions. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Assented Stock | Shares deposited with a third party under an agreement. | Involves voluntary acceptance of changes in securities. |
| Non-Assented Stock | Shares not deposited or agreed upon during corporate changes. | Does not involve any agreement or acceptance of changes. |
If you are involved in a corporate transaction and need to deal with assented stock, consider the following steps:
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