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Don't companies have to establish (and report to shareholders) the 409a valuation regardless of anything else? Every private company I've had stock in has done
by sulam 10y ago
Don't companies have to establish (and report to shareholders) the 409a valuation regardless of anything else? Every private company I've had stock in has done a quarterly 409a in order to demonstrate to the IRS that they are fairly valuing options. Admittedly this is a bare number, without any of the supporting material that may be of interest if one wants to do their own valuation, so DE law is still interesting here, but for the sheer purpose of valuing your stock 409a seems to do the job.
- conorgil145 10y agoDo you know if the 409(a) report is required to be made available to stock holders, or is it something the company can also hide? If the company reports the valuation reported in the 409(a), is there anything else of value in the report which stock holders would benefit from reading/being aware of?
- jdavis703 10y agoI think the only time you get the 409(a) valuation is when you get the IRS reports after execrcising.
- sulam 10y agoMy wife recently needed to know the 409(a) valuation of a company she owns stock in and was able to get it within a couple days. Obviously YMMV, but consider that we pay estimated taxes quarterly -- valuing those shares at least once per quarter is a necessity.