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 Pennsylvania Corporate Right of First Refusal is a legal provision that grants a corporation the first opportunity to purchase a specific asset or property before it is offered to any other party. It is commonly included in corporate resolutions to ensure that the corporation maintains control and ownership over valuable assets and business opportunities. This right is particularly useful in situations where a shareholder or a third party wishes to sell their interest in a corporation or transfer a specific asset or property to another party. By implementing the Corporate Right of First Refusal, the corporation is provided with a chance to step in and purchase the asset or property on the same terms as the proposed third-party buyer, effectively preventing the transfer to an outside entity. In Pennsylvania, there are a few different types of Corporate Right of First Refusal that can be included in corporate resolutions. These include the "Broad Right of First Refusal" and the "Narrow Right of First Refusal." 1. Broad Right of First Refusal: This type of right gives the corporation the first opportunity to purchase the asset or property being offered for sale, on the same terms and conditions agreed upon with the potential third-party buyer. It grants the corporation a wider scope of control and allows them to intervene in a more comprehensive manner. 2. Narrow Right of First Refusal: In contrast, the narrow right of first refusal limits the corporation's right to purchase solely to the specific asset or property being sold. This type of right is more focused and only allows the corporation to assert its preference in acquiring the identified asset or property, without extending to other potential opportunities that may arise. The Pennsylvania Corporate Right of First Refusal — Corporate Resolutions safeguards the corporation's interests by providing an opportunity for the corporation to retain or expand its ownership of assets and control over business opportunities. By utilizing this provision, the corporation can maintain its desired level of control, reduce potential competition, and protect the value of its investments.
