Stock Purchase/Membership Interest Purchase Agreements

A stock purchase agreement (also referred to or known as, a membership interest purchase agreement for the purchase of units in a limited liability company) is an agreement between the company or an existing owner of shares or units in a company and a buyer which desires to purchase shares or units in the company either from the company or an existing owner of the company. Stock purchase and membership interest purchase agreements are subject to existing corporate governance laws, documents and agreements such as articles, by laws, shareholder and/or operating agreements and state and federal laws which often includes restrictions on whom can own the shares or units and on the Buyer’s ability to resell the shares or units, as well as restrictions on distributions and dividends and the management and operations of the company. As such, it is strongly recommended, regardless of whether you are the Seller or Buyer, that an attorney be hired to represent your interest from the beginning of the transaction.

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