A corporation whose shares are held by a single shareholder or a closely-knit group of shareholders (such as a family) is known as a close corporation. The shares of stock are not traded publicly. Many of these types of corporations are small firms that in the past would have been operated as a sole proprietorship or partnership, but have been incorporated in order to obtain the advantages of limited liability or a tax benefit or both.
A buy-sell agreement is an agreement between the owners (shareholders) of a firm, defining their mutual obligations, privileges, protections, and rights. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Alabama Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions
Category:
State:
Multi-State
Control #:
US-02569BG
Format:
Word;
Rich Text
Instant download
Description
Free preview
How to fill out Shareholders' Agreement Between Two Shareholders Of Closely Held Corporation With Buy Sell Provisions?
US Legal Forms - one of the largest resources of official documents in the United States - provides a variety of legal document templates that you can download or print.
By using the site, you will find thousands of forms for corporate and personal use, organized by categories, states, or keywords. You can quickly access the most recent versions of forms like the Alabama Shareholders' Agreement between Two Shareholders of a Closely Held Corporation with Buy Sell Clauses.
If you have an account, Log In to obtain the Alabama Shareholders' Agreement between Two Shareholders of a Closely Held Corporation with Buy Sell Clauses from the US Legal Forms library. The Download button will display on each template you view. You can access all previously acquired forms in the My documents section of your account.
Choose the format and download the form to your device.
Make modifications. Complete, edit, print, and sign the downloaded Alabama Shareholders' Agreement between Two Shareholders of a Closely Held Corporation with Buy Sell Clauses.
- Verify you have selected the appropriate form for your city/state. Click the Preview button to review the contents of the form.
- Check the form details to ensure you have chosen the correct document.
- If the form does not meet your requirements, utilize the Search area at the top of the screen to find one that does.
- Once satisfied with the form, confirm your choice by clicking the Purchase now button.
- Then, select your preferred payment method and provide your details to register for the account.
- Complete the transaction. Use your credit card or PayPal account to finish the transaction.
Form popularity
FAQ
Definition. 1. A buy-sell agreement is an agreement among the owners of the business and the entity. 2. The buy-sell agreement usually provides for the purchase and sale of ownership interests in the business at a price determined in accordance with the agreement, upon the occurrence of certain (usually future) events.
Some of the common triggers include death, disability, retirement or other termination of employment, the desire to sell an interest to a non-owner, dissolution of marriage or domestic partnership, bankruptcy or insolvency, disputes among owners, and the decision by some owners to expel another owner.
Establish a market for the corporation's stock that might otherwise be difficult to sell; Ensure that the ownership of the business remains with individuals selected by the owners or remains closely held; Provide liquidity to the estate of a deceased shareholder to pay estate taxes and costs; and.
A shareholder agreement, on the other hand, is optional. This document is often by and for shareholders, outlining certain rights and obligations. It can be most helpful when a corporation has a small number of active shareholders.
Establish a market for the corporation's stock that might otherwise be difficult to sell; Ensure that the ownership of the business remains with individuals selected by the owners or remains closely held; Provide liquidity to the estate of a deceased shareholder to pay estate taxes and costs; and.
One common question we receive when discussing key person benefits is What is a buy/sell agreement? A buy/sell agreement, also known as a buyout agreement, is a contract funded by a life insurance policy that can help minimize the turmoil caused by the sudden departure, disability or death of a business owner or
Company purchase agreements are essential for transferring the ownership of a business upon a trigger event, such as death or disability. They generally contain the terms and conditions of the sale, including obligations, warranties, and liabilities.
What is a Buy-Sell Agreement? Buy-sell agreements, also called buyout agreements and shareholder agreements, are legally binding documents between two business partners that govern how business interests are treated if one partner leaves unexpectedly.
A good buy-sell agreement can offer business owners peace of mind and help them to avoid future conflict and retain control of their companies. Once in place, agreements should be reviewed on a regular basis or especially when there is a major change in the business or an anticipated change in ownership.