My father wants to sell 50 percent of his small business corporation to me. can we do this with a simple letter and notary?

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My father wants to sell 50 percent of his small business corporation to me. can we do this with a simple letter and notary?

Also I will manage the company and have control over the decisions. Can I do this with a notary?

Asked on April 17, 2012 under Business Law, Texas

Answers:

Glenn M. Lyon, Esq. / MacGregor Lyon, LLC.

Answered 9 years ago | Contributor

Whether the documents are notarized or not is legally irrelevant (unless there is for some reason an issue whether it is you or your father actually singing the documents). What is important is to have a proper stock transfer/purchase agreement and amend the corporation’s internal documents as necessary. Obtain a local business attorney to assist you on this and in the future.

Brenda Feigen / Feigen Law Group

Answered 9 years ago | Contributor

You should only use a notary to verify that it is you (and your father) who are signing a contract in front of her/him.  A notary has no legal power or right to give legal advice (unless the notary is a lawyer in this field of law.) What you need is a lawyer to draw up a contract that will be binding and set forth the rights and responsibilities of both you and your father, as well as clarify the status as of the time you sign.  You will also need to amend the corporation's papers to set forth the changes made, usually with the secretary of state's office.  I am able to do this for you because I do business transactions of all kinds. 

Brenda Feigen

Answered 9 years ago | Contributor

You should only use a notary to verify that it is you (and your father) who are signing a contract in front of her/him.  A notary has no legal power or right to give legal advice (unless the notary is a lawyer in this field of law.) What you need is a lawyer to draw up a contract that will be binding and set forth the rights and responsibilities of both you and your father, as well as clarify the status as of the time you sign.  You will also need to amend the corporation's papers to set forth the changes made, usually with the secretary of state's office.  I am able to do this for you because I do business transactions of all kinds. 


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