4 ms·

Not sure why this is news. Virtually every privately-held corporation or LLC has a stock transfer restriction. Any company that doesn't is an outlier.

• tzs 12y ago
  This part was interesting: > The employee also learned that Uber had amended its bylaws more than a year earlier, in order to restrict unapproved secondary sales. It was unclear if the bylaw change actually applied to shareholders who had not been party to the vote — lawyers seem to disagree on this point of Delaware law — but Uber threatened litigation if he tried to proceed. So he held. The financial and reputational hassles of a lawsuit would have just been too much, even if he had won. One of the main reasons to incorporate in Delaware is that they have an extensive body of settled law on complex corporate issues. That Uber has managed to handle what should have been a pretty common and routine thing in a way that apparently is unclear under Delaware law is worthy of a story.
• wpietri 12y ago
  The news to me is that they are using the restriction to buy stock cheap and sell it dear, screwing their early supporters out of the difference.