Guest scr Posted July 30, 1999 Posted July 30, 1999 A profit sharing plan owns the majority of stock in a company. The company wishes to recapitalize and buy the stock of the profit sharing plan only by trading that stock for noncallable preferred stock (equal to the fair market value of the stock owned by the plan). ERISA 408(e) states that if the transaction is for adequate consideration and no commission is paid, then it would be permitted. Would it be permitted?
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