Legal Question in Business Law in Florida

Value of private stock?

Early in 1998 I went to work for a flight school in FL. Later that year I was promoted to Vice President. I was offered stock in the company, amounting to 5% of the company, as part of my compensation for the new position. In 2002 I left the company still holding the stock. Recently I learned that the company has been sold. Wanting to collect my share of the sale I contacted the owner of the company. He agreed to buy the shares back from me and said he would get back to me within a week with his estimate of what the shares were worth. He did not get back to me and he has stopped returning my calls. What recourse do I have?


Asked on 10/29/06, 9:14 am

3 Answers from Attorneys
Michael Stewart Michael D. Stewart

Re: Value of private stock?

Have your lawyer send him and the new owner a letter.

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Answered on 10/29/06, 9:20 am
David Slater David P. Slater, Esq.

Re: Value of private stock?

At some point you will need an accountant to value the stock.

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Answered on 10/29/06, 9:24 am
Scott R. Jay Law Offices of Scott R. Jay

Re: Value of private stock?

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

Without resorting to the high cost of an analysis by an accountant, the value of the stock is probably 5% of the total selling price. It appears that former owner does not wish to address your interest.

I strongly recommend that you immediately consult with a qualified attorney to write a demand letter to both the former owner and the current owner regarding your ownership interest. Sellers often take back a purchase money mortgage for a short period of time and the Buyer is allowed to offset unforseen liabilities against payments owed.

The sooner you pursue your rights, the better chance you have to collect anything.

Scott R. Jay, Esq.

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Answered on 10/30/06, 8:08 pm


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