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.
Indiana Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder should the Beneficiaries of the Deceased Shareholder Desire to Sell such Shares
Category:
State:
Multi-State
Control #:
US-02629BG
Format:
Word;
Rich Text
Instant download
Description
Free preview
How to fill out Shareholders' Agreement With Buy-Sell Agreement Allowing Corporation The First Right Of Refusal To Purchase The Shares Of Deceased Shareholder Should The Beneficiaries Of The Deceased Shareholder Desire To Sell Such Shares?
US Legal Forms - one of the largest collections of legal documents in the United States - offers a multitude of legal paper templates that you can download or print.
By using the website, you can discover thousands of forms for business and personal use, organized by categories, states, or keywords.
You can find the latest versions of forms like the Indiana Shareholders' Agreement with Buy-Sell Agreement Granting the Corporation the Initial Right of Refusal to Acquire the Shares of a Deceased Shareholder if the Beneficiaries of the Deceased Shareholder Wish to Sell those Shares in moments.
Examine the form description to ensure that you have chosen the right form.
If the form does not meet your requirements, use the Search field at the top of the screen to find the one that does.
- If you currently have a monthly subscription, Log In and download the Indiana Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder if the Beneficiaries of the Deceased Shareholder Wish to Sell those Shares from the US Legal Forms library.
- The Download button will appear on every form you view.
- You can access all previously saved forms in the My documents section of your account.
- If you are utilizing US Legal Forms for the first time, here are simple instructions to get started.
- Make sure you have selected the correct form for your city/county.
- Click the Preview button to review the form's content.
Form popularity
FAQ
The answer is usually no, but there are vital exceptions. However, there are a few situations in which shareholders must sell their stock even if they would prefer to hold onto their shares. The two most common are when a company gets acquired and when it has an agreement among shareholders calling for forced sales.
Does a shareholders' agreement override articles? No, a shareholders' agreement will not override the Articles if there is a conflict, then the articles will prevail.
Entity-purchase agreement Under an entity-purchase plan, the business purchases an owner's entire interest at an agreed-upon price if and when a triggering event occurs. If the business is a corporation, the plan is referred to as a stock redemption agreement.
The answer is usually no, but there are vital exceptions. However, there are a few situations in which shareholders must sell their stock even if they would prefer to hold onto their shares. The two most common are when a company gets acquired and when it has an agreement among shareholders calling for forced sales.
The business owners individually own the policies insuring each other's lives. When a business owner dies, the proceeds are paid to those surviving owners who hold one or more policies on the deceased owner, and these surviving owners buy the shares from the deceased owner's personal representative.
Yes. Most companies that raise investment (on Crowdcube or elsewhere) include a drag along procedure in their articles of association. The procedure is designed to ensure that minority shareholders cannot block an exit by the majority.
To buyout a shareholder, a company must be able to pay for the value of the ownership interest. A company can fund the purchase of a shareholder's interest by using: The Assets of the Business: A buyout agreement may stipulate that the company can pay over time with the income earned from the business.
The sale of the shares may be accomplished in two very different ways. First, each shareholder can agree to purchase, pro rata or otherwise, all the stock being sold. This is called a "cross purchase" of stock.
When some of the shareholders wish to sell their share, a clause in the shareholder's agreement should state that the shareholders who wish to sell their shares have to show the right to match an offer received from a third party. This is known as the right of first refusal.
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.