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Corporations • Rights of Shareholders
CORP#055
Legal Definition
Shares can be forcibly redeemed from shareholders where there is a redemption right (i.e., a built-in right of the corporation to repurchase the shares in a forced sale at a particular price).
Plain English Explanation
Some corporations have the right to force their shareholders to sell their shares back at a specific price. This right is either established in the corporation's articles of incorporation, or in the contract that was agreed to when the shares were originally sold by the corporation.
Visual Aids
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