Alienable Details

There are assets in every business that form the business's total net worth, including buildings and land. When the assets of an establishment are accounted for, including the money in the bank, the total sum is the company's net worth. These assets are either owned by the business, shareholders, or investors. Some of the company assets can be sold to new owners, while others are restricted and can't be sold regardless of the price offered.

The alienable property or assets refers to the shares in a business that an owner can sell at any price. The process of alienating shares includes the payment of the requested amounts and signing a legal document confirming the transfer of ownership. This process can only occur when it comes to alienable assets. If an asset is alienable, anybody with money that meets the asset's price tag can approach the company to negotiate. When an asset is transferred to you, you become the legal custodian of the property, and you have the right to sell it to another owner at your price.

The opposite of alienable is inalienable, which means that an owner can't sell a property or asset to a new owner. These terms are decided by the business owners or the Board of Directors since some shares are vital to the business, and selling them might jeopardize the operations. A common example of an inalienable asset would be a piece of land a family refuses to sell despite many generous offers. The importance of the asset outweighs any monetary compensation.

Example of Alienable

Let's say that you and your friend started a business while you were young, and it has gradually grown to be one of the biggest online stores in your area. Your company is an online shop that allows buyers and sellers to meet up virtually through media and negotiate prices before delivering the goods. Some of your competitors are impressed by your work ethic and business operations. They approach you with the motive to buy shares of your company and become partners in your establishment.

Before you started your business, you prepared a plan that would come in handy for situations like this. There are shares that you set aside for sales and others that can't be sold to a new owner no matter the financial situation in the company. The company's major shares are exclusively owned and can't be sold to anyone, while you can sell some of the minor shares. This shows that the significant shares are alienable and can be sold and transferred to a new owner if their asking price is met.

In your case, you would offer the minor shares to the potential buyers since they are transferable and keep the major shares out of the discussion. If the buyers were willing to buy assets among the minor shares, you would proceed to the next step: payment and signing of the necessary legal documents.