[geeks] PayPal alternative offering $25 free cash

[Lionel Peterson]

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...

CL has to meet the offer or let the sale go through - failure to do so  
calls into question the real ownership of the shares/company. (as I  
understand it, btianal)[0]

Ken

[0] But Thankfully I Am Not A Lawyer ;^)


On May 16, 2008, at 11:35 PM, Phil Stracchino <alaric at metrocast.net>  
wrote:

> Nadine Miller wrote:
>> From a brief reading, and knowing the way that Newmark has tried to  
>> situate himself amongst the SiliValley high rollers, I'm guessing  
>> the former CL employee that sold his/her stock to eBay did so  
>> because Newmark and the other founders never considered someone  
>> might do that. They should have put a clause in the shareholder  
>> agreement giving the company first right of refusal on the par  
>> value of the shares so that they couldn't get undermined by outside  
>> parties buying shares this way.  Not a good mistake when you're  
>> talking millions and modern ideas of corporate "ethics" (yes that  
>> is sarcasm).
>> While my own "rookie" mistakes in the area of company forming were  
>> on the order of thousands only, this is one area I've continued to  
>> educate myself on the topic to prevent any recurrence. :-/
>
> Yeah.  If I were floating a company and issuing stock, I would make  
> absolutely certain it was written into the language of all stock  
> grants etc that any voting stock must be offered back to the company  
> before it can be sold outside the company.
>
> But then, personally I'd try to avoid becoming subject to the whims  
> and vagaries of the stock market in the first place.  You want my  
> opinion, the day you start issuing stock in your company is the day  
> you lose control of it.
>
>
> -- 
>  Phil Stracchino, CDK#2     DoD#299792458     ICBM: 43.5607, -71.355
>  alaric at caerllewys.net   alaric at metrocast.net   phil at co.ordinate.org
>         Renaissance Man, Unix ronin, Perl hacker, Free Stater
>                 It's not the years, it's the mileage.
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