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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.
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