[geeks] PayPal alternative offering $25 free cash

[velociraptor]

On Sat, May 17, 2008 at 7:23 AM, Lionel Peterson <lionel4287 at gmail.com> wrote:
> The company gets first refusal, but the third-party buyer sets the price. It
> may very well be that ebay over-paid to such a level that CL choose not to
> match it...

If you don't write this into the corporate by-laws and stockholder
agreements, there is no regulation to require that a privately held
security is first offered to the corporation, board of directors, or
corporate officers.  Many people run off and write up their corporate
by-laws without thinking about the future.  It is possible to amend
the by-laws (even after the fact, which *is* legal, though it may be
challenged if there is an ongoing legal question when you do it), but
most folks don't even do the minimum necessary to keep their
corporation at "arms length"--meaning you are really trying to run a
company, rather than having a partnership/sole-proprietorship
masquerading as a corporation.  Keeping things at arms length makes
sure that the corporate veil is not easily penetrated in case of
litigation.

I got a crash course in this thanks to our business partners in our
cell phone business in Silicon Valley.

=Nadine=