How Do Shareholders Opt Out of Ownership?
Shareholders own stock in a private or public corporation which can permit them certain privileges such as post-liquidation assets, dividends and the right to buy or sell shares. In some cases, shareholders may want to dissolve any ownership of that corporation.
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Dissolving Ownership
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Common and preferred shareholders have particular ownership rights they can opt out of simply by selling their shares of that corporation. This is called transferring ownership, because the seller of shares transfers his ownership to the buyer.
Shareholder's Agreement
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A shareholder's agreement is created during a joint venture or by a company with a small amount of shareholders. This document defines how the company will be managed and governed. It further outlines whether or not shareholders will be involved in day-to-day operations.
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Considerations
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Before opting out, give serious thought to your reasons for selling your shares. Consider the market, your personal situation and be certain this decision is in your best financial interest.
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