Decided to form corporation to operate lawn care business

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Reference no: EM131562653

Todd and three of his friends have decided to form a corporation to operate a lawn care business. The corporation will issue 100 total shares, and each investor will own 25 shares, or 25% of the corporation. Todd is very concerned that if the corporation does well, it may sell additional shares to other investors, and if that happens Todd will no longer own 25% of the corporation. Is there some provision that could be put into the articles of incorporation that will allow each of the original shareholders to retain a 25% interest in the corporation? What is it called? Explain how it will work.

Reference no: EM131562653

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