Form with which a corporation advises that it has resolved that some shareholders shall be required to give the corporation the opportunity to purchase shares before selling them to another.
The Kansas Corporate Right of First Refusal (ROAR) is a legal concept that grants a corporation the first opportunity to purchase or acquire certain assets or interests. It is a provision commonly found in corporate resolutions and contracts, aiming to protect the corporation's interests and maintain control over its operations. The ROAR gives the corporation the right to match or better any competing offer received by a shareholder or third party for the sale, transfer, or disposition of specific assets, shares, or ownership interests. In other words, if a shareholder or third party receives an acceptable offer, they must first provide the corporation with the opportunity to buy those assets on the same terms before accepting the outside offer. The ROAR serves various purposes, such as allowing the corporation to maintain ownership or control over critical assets, prevent unwanted third-party ownership, preserve strategic relationships, or consolidate ownership within the company. It ensures that the corporation has the ability to protect its interests and determine the future direction of the company. In Kansas, there are different types of Corporate Right of First Refusal — Corporate Resolutions, each catering to specific circumstances or asset types. These types may include: 1. Shareholder Right of First Refusal: This type of ROAR applies when a shareholder intends to sell or transfer their shares to a third party. Before accepting any outside offer, the shareholder must first offer the corporation the opportunity to purchase those shares on the same terms. 2. Asset Right of First Refusal: This type of ROAR covers specific assets within the corporation. If the corporation intends to sell or transfer these assets, it must first provide existing shareholders the right to purchase those assets. 3. Investment Right of First Refusal: This type of ROAR is common in cases where the corporation seeks additional investment or financing. Before accepting investment from a new or existing shareholder, the corporation must first offer the opportunity to other shareholders to make a competing investment on the same terms. It is important to note that the specifics of the Kansas Corporate Right of First Refusal — Corporate Resolutions may vary depending on the corporation's bylaws, articles of incorporation, or specific agreements. Therefore, it is crucial to consult legal counsel or refer to the corporation's governing documents for accurate and tailored information.
