It Depends – Can I exit a shareholder of a private company?

In this edition of 'It depends', senior associate Keeghan Silcock talks about whether you can exit a shareholder from a private company and what steps you can take to protect against a dispute.

Video transcript

Hi and welcome to another edition of it Depends. Today I'll be talking about whether you can exit a shareholder from a private company.

How can the parties agree on a shareholder's exit?

So, there are a number of ways that the parties can agree on the way that a shareholder is exited from a company. The first way would be to just transfer that shareholder's shares to either an existing shareholder, one or more existing shareholders in a company, or a third party. Another option would be for the company itself to buy back that shareholder's shares and the party should seek advice about the tax implications of each of these options at the time because they do differ. Once the parties are set on the way that the exit will be structured, the