Module 3 · Chapter 7

Transfers

In a joint venture each owner chose its partners. This chapter shows how the agreement controls who may sell shares, to whom and when, and what happens when an owner is itself sold.

≈ 12 min read 8-question test

In this chapter

  • How the agreement locks shares in, and when they may move
  • How first refusal works, and how the price is set
  • What happened to A&W's shares when A&W itself was sold

7.1Transfers in one paragraph

In a joint venture each owner chose its partners. Ferris did not invest, and A&W did not put in its cold stores, to end up in business with a stranger. So the SHA decides who may sell shares, to whom and when.

Key point

A share may change hands only as the agreement allows. Before any sale to an outsider, the co-owner gets the first chance to buy. If an owner is itself sold, its shares are offered to the co-owner as if it were selling them.

Also in this chapter

  1. The lock-in and the other basic rules
  2. First refusal for the co-owner
  3. Moving shares within a group
  4. Why a sale of the owner counts as a sale of its shares
  5. The waiver: terms instead of shares
  6. When A&W itself was sold
  7. What Ferris would have gained by buying
  8. Bringing a newcomer in: the Deed of Adherence
  9. Your job

Preview

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