A buy-sell agreement is useful in assuring the orderly transfer of interests in the partnership or corporation. By limiting a party's ability to dispose of his or her interest in the partnership or corporation, control of the partnership or corporation may be assured.
A Shareholders Agreement of Professional Corporation (PC) Owned by Physicians with Buy-Sell Provisions is a contract between shareholders of a professional corporation owned by physicians. It outlines the rights and obligations of the shareholders as well as the procedures for buying and selling shares of the professional corporation. This agreement typically covers topics such as corporate governance, management of the business, dividend rights, voting rights, dispute resolution, and ownership transfer. Types of Shareholders Agreement of Professional Corporation Owned by Physicians with Buy-Sell Provisions include buy-sell agreements, cross-purchase agreements, redemption agreements, and hybrid agreements. A buy-sell agreement allows one shareholder to purchase the shares of another shareholder in the event of death, disability, or retirement. A cross-purchase agreement requires each shareholder to purchase the shares of the deceased or disabled shareholder from their estate. A redemption agreement is when a professional corporation agrees to buy the shares of the deceased or disabled shareholder. A hybrid agreement combines aspects of the other three agreements, such as the corporation purchasing the shares and the remaining shareholders pooling their resources to do so.
