Full question:
For Bylaws for a corporation (for profit) is there a form provision for 'dissolution' of the entity and then how shares are handled? As well as authorizing new shares for new partners (process for same)?
- Category: Corporations
- Subcategory: Corporate Dissolution
- Date:
- State: Colorado
Answer:
A preincorporation or shareholder agreement is an agreement between a corporation and shareholders, who own outstanding stock of the corporation and is created to provide for how the shares of a deceased shareholder may be purchased and how shares of a person who desires to sell their stock may be obtained by the other shareholders or the corporation. Restrictions on the sale of stock are included to accomplish the goals of the shareholders to keep the corporation under the control of the existing shareholders. Typically, information regarding dissolution of a corporation and authorization of new shares may also be set forth in a shareholder agreement.
The corporation’s charter, by-laws and/or articles of incorporation may specify the rights of shareholders. The articles of incorporation include the corporation's name, whether the corporation will exist for a limited period of time or perpetually, the lawful business purpose of the corporation, the number of shares that the corporation will issue to shareholders as well as the types and preferences of the shares and the corporation's registered agent and address for the purpose of accepting service of process in the event that the corporation is sued, and the names and addresses of the corporation's directors and incorporators. Bylaws are rules and regulations that are formally adopted and/or amended and may include rules regarding the duties and conduct of corporate officers, directors, and shareholders, and typically designate times, locations, and voting requirements for corporate meetings. The articles of incorporation or the corporate bylaws determine how many directors will serve on the board of directors and how long the directors' terms will be.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
