K-Testing Lab v. Estate of Kennon

BVLaw
Full Text of Court Cases
July 7, 1998
8734 Testing Laboratories
541380 Testing Laboratories
buy/sell agreement

K-Testing Lab v. Estate of Kennon
1998 Tenn. App. LEXIS 451
US
State Court
Tennessee
Court of Appeals
Lillard

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Outdated Value of Stock at Heart of Valuation Case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.