What to do about a preferres stock certificate and a merger?
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What to do about a preferres stock certificate and a merger?
I am a Private Investigator. My client has a preferred stock certificate stating 140 shares of preferred stock. It was issued in 1980 to my client’s now deceased spouse. The company was a subsidiary of the parent company and was merged into the parent company 27 years ago. The parent company is a large successful company which is privately held. My client wishes to convert the 140 shares to cash. It plainly states on the certificate that the shares are worth $100 each. I have written to the company headquarters advising them of my client’s desire. They will not respond. What are my options. Lawsuit? Other options?
Asked on October 9, 2014 under Business Law, Oregon
Answers:
Anne Brady / Law Office of Anne Brady
Answered 9 years ago | Contributor
When the merger occurred, there would have been some sort of notice sent to stockholders at that time. There may have been a limited time within which to convert/sell shares. Or the shares may have been converted into shares in the merger company. You need to speak with someone in investor relations to find out what to do, but it may be too late. A lawsuit does not sound like a good option at this point. The company has not done anything except fail to respond to your letter, and they do not know you from Adam.
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