I have two questions regarding an Oregon LLC with 7 shareholders with initial valuation of $1,000,000:
First, I have 5% interest (5 shares) of an LLC and my initial capital contribution of $50,000. Originally, 2-years ago, the company started with initial valuation of $1,000,000. Just recently the company's board did another valuation and it is at $2,000,000. So the value of my 5% interest has doubled. Now to my question, does my initial capital contribution doubles too to $100,000 or it doesn't change?
Second: One of the shareholders (call him Mike) provided the company technical services on an IP in return for 2% interest in the company. Later, the company found out they can't patent it due to existence of prior art. So the company stopped working on the project and started on another IP, which the shareholder Mike has no involvement in. Mike is willing to give up his 2% interest back to the company. So is there a way for Mike's 2% interest gets transferred back to the company without going through a sale transaction where the company buys them from Mike.