A right of first refusal permits a shareholder to refuse to sell his or her shares to the corporation that issued them.

Name: A right of first refusal permits a shareholder to refuse to sell his or her shares to the corporation that issued them.
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Question

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A right of first refusal gives the corporation the right to purchase the shares first before the shareholder can sell them to another party. The shareholder cannot refuse to sell to the corporation if the terms of the purchase are reasonable.

A Right of First Refusal Permits a Shareholder to Refuse