Alternate Transferee

AAA

DEFINITION of 'Alternate Transferee'

An individual or group that is allowed to accept the transfer of an asset or security in the case that a transferee elects to not accept or is not permitted to accept the transfer. An alternate transferee is often specifically outlined in a contract agreement, though in some cases the alternate transferee may be designated by another party. An alternate transferee is chosen based on the ability to continue the terms outlined in an agreement.




INVESTOPEDIA EXPLAINS 'Alternate Transferee'

For example, some company's require a board of directors to approve transfers between two different parties if the shares being transferred pass a certain threshold, such as 10% of outstanding shares. If the board of directors rejects the transfer, they may be required to designate an alternate transferee that is allowed to purchase the shares at market price.

RELATED TERMS
  1. Transfer of Mortgage

    A transaction where either the borrower or lender assigns an ...
  2. Direct Transfer

    A transfer of assets from one type of tax-deferred retirement ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal ...
  4. Provision

    A legal clause or condition contained within a contract that ...
  5. Transfer

    A change in ownership of an asset, or a movement of funds and/or ...
  6. Assignable Contract

    A futures contract with a provision permitting the contract holder ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Taxes

    3 Retirement Plan Moves To Make Before Year-End

    If you don't know what must be done before December 31 you may miss opportunities - or even pay penalties.
  2. Taxes

    Tax-Efficient Wealth Transfer

    Taxpayers with large taxable estates were required to take steps to reduce them before 2011.
  3. Options & Futures

    Understanding Rights Issues

    Not sure what to do if a company invites you to buy more shares at discount? Here are some of your options.
  4. Fundamental Analysis

    The Best 5 Online Accounting Systems For Small Business

    Running a small business can be difficult, but thanks to these online accounting services, taking care of payroll doesn't have to be.
  5. Budgeting

    How Your Government's Budgetary Decisions Impact the Public Sector

    Issues facing the public sector are not unlike some issues facing America’s oldest and largest companies, but with larger and broader impacts.
  6. Investing

    Understanding Cost Accounting

    Cost accounting is the method of financially allocating expenses to goods that are manufactured for resale. Cost accounting is also referred to as managerial accounting, because managers use ...
  7. Investing

    What are Prepaid Expenses?

    A prepaid expense is an asset on the balance sheet. Due to accounting principles, expenses are often accrued on the balance sheet and expensed in a later period.
  8. Investing

    What's a Sunk Cost?

    A sunk cost was incurred in the past, is independent of future events and cannot be recouped. Economists teach that sunk costs should not be considered when making a financial decision. Rather, ...
  9. Investing

    What are Fixed Costs?

    Fixed costs are business expenses that do not change as the level of production goes up or down. They are one of two types of business expense, the other being variable costs. Variable costs ...
  10. Fundamental Analysis

    What's the FCCR?

    The fixed charge coverage ratio (FCCR) is an accounting calculation that shows a company’s ability to pay its fixed costs – expenses that generally do not vary with production level. This may ...

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center