Shareholders may enter into an agreement that states that if a shareholder wants to sell his stock he must sell it to the corporation.

Question

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Shareholders can legally enter into a shareholders' agreement that may include provisions that govern the sale of shares. This agreement can state that if a shareholder intends to sell their stock, they must sell it back to the corporation or to other shareholders first. This is known as a right of first refusal or a buy-sell clause.

Shareholders May Enter into an Agreement That States That If