Tom owns 700 shares of stock in Bottle Co, a (1102) C-Corp. Bottle Co. is a closely held family corporation with only members of the family owning shares. There are 10 other family members owning various shares of the company.

Tom would like to retire from an ownership role in the company. If the company agrees to purchase back all of Tom's shares.

What are the ramifications to him, and to the company under the proposed transaction?

What restrictions will be placed on him or the company under the proposed transaction?

If Tom were to consult for the company on an occasional basis, would that change the results of the transaction? If so how?