Articles Tagged with shares

When business entities become subject to internal dissension, it’s not uncommon for several members to approach the court system and seek to dissolve the entity. Often, this is in the best interest of all involved. 

Sometimes, however, the other members, shareholders, or partners, do not want to let the business go. They feel it can continue to operate. As such, they may invoke a special mandatory buyout to keep the business running. The buyout allows those who want the business to continue to purchase the interests or stocks of those who wish to leave. 

For LLCs and Partnerships, the buyout price is determined by the same standard: Fair Market Value. Corporations, on the other hand, conduct buyouts based on “Fair Value.” While this difference may seem minimal, they are ultimately quite different from each other.