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: Delaware Business Litigation ReportCourt Of Chancery Upholds Notice Requirement In Stockholder Agreement
By Edward M. McNally
TR Investors LLC v. Genger, C.A. 3994-VCS (July 23, 2010)
Stockholder agreements frequently provide that notice must be given before any stock subject to the agreement may be transferred. Usually, the notice triggers a right to buy. Here the Court, as expected, held that the failure to give the notice does not end the other party's right to buy, but the stock and informal notice is not good enough to comply with the formality required by the agreement.
Full post as published by Delaware Business Litigation Report on July 23, 2010 (boomark / email).
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