The partners are engaged in a particular business and the purpose of this agreement is to provide for the sale by a partner during a partner's lifetime, or by a deceased partner's estate, of his interest in the partnership, and for the purchase of such interest by the partnership at a price fairly established; and to provide all or a substantial part of the funds for the purchase.
Buy Sell Agreement Purchase With Multiple Partners In Queens
Category:
State:
Multi-State
County:
Queens
Control #:
US-00443
Format:
Word;
Rich Text
Instant download
Description
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FAQ
While Shareholder Agreements might touch on provisions related to the transfer of shares or prohibiting transfers, a Buy-Sell Agreement is more specific and effective. It ensures that transitions are handled in a way that aligns with the owners' expectations and the business's financial stability.
A buy and sell agreement may also be called a buyout agreement, a business will, or a business prenup.
Therefore, shareholder agreements are often called buy/sell agreements. The agreement should define persons to whom stock may be transferred without triggering any implications.
While a buy-sell agreement typically addresses the sale of shares among co-owners of a business, a shareholder agreement may address a wider range of issues, including the management and control of the business , the distribution of profits, and the appointment of directors and officers.
Trigger events will determine when your buy-sell agreement will come into play. Common circumstances include the death, disability, retirement or voluntary departure of a partner, but may extend to additional scenarios, such as divorce or individual bankruptcy.
These agreements work by first purchasing life insurance policies for each business owner, with the other owner(s) named the beneficiary. If a partner passes away, the surviving owners receive a death benefit to use toward purchasing the deceased owner's stake in the business.