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Redemption of Shares or Partnership Interests

 

Redemption is when a shareholder sells his or her shares back to the corporation that issued the shares, or when a member of a Limited Liability Company (LCC) or Limited Partnership (LP) sells his or her interests back to the partnership. A corporate redemption may take place because a provision in a shareholders agreement is being exercised, or because the corporation and shareholder have negotiated a repurchase of shares previously issued.

For a corporation, a redemption will always include the following:

 

Redemption Agreement,
   
Corporate Resolution,
Minutes,
   
Assignment of Stock Certificate, and
   
Update to Stock Transfer Ledger.
   

Other documents may be required.

 

 

 
 





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