Summary
Issue was purchase of 50% interest from estate per stock redemption agreement.
See Also
Outdated Value of Stock at Heart of Valuation Case
The company sought to purchase a 50% interest from Kennon's estate pursuant to a stock redemption and restriction agreement that established a procedure by which, upon the death of either stockholder, the corporation would purchase the decedent's stock for a previously ascertained value.
Stock Value Calculated Under Stock Redemption Agreement Upheld
The Tennessee Court of Appeals enforced a buy-sell agreement that required the company to purchase the stock in the event of death for a specific value contained in the decedent's shareholders' agreement.