Shareholders Shareholder

• Category: Corporations - Buy Sell
• State: Multi-State
• Control #: US-0909BG
• Format: Word; Rich Text

Description

This Buy-Sell Agreement is an agreement between shareholders and the corporation whereby the parties agree to the terms and conditions of a future sale of the shareholders' interests. By signing the agreement, the party contractually limits his or her ability to dispose of his or her interest in the corporation to the terms of the agreement. A buy-sell agreement is useful in assuring the orderly transfer of interests in a corporation. By limiting a party's ability to dispose of his or her interest in the corporation, control of the corporation may be assured. A Buy-Sell Agreement of Shareholders with Mandatory Redemption by Corporation on Death Shareholder with Purchase Option during Lifetime of Shareholder and Purchase Price Based on Book Value is a legal agreement between shareholders of a company that outlines the rights and responsibilities of each party when a shareholder dies, retires, or otherwise leaves the company. The agreement typically includes provisions for the sale of the shareholder's shares to the corporation or other designated party, with a purchase price based on the book value of the shares. The agreement may also include provisions for the purchase of the shares from the shareholder during their lifetime, as well as provisions for the corporation’s mandatory purchase of the shares upon the death or retirement of the shareholder. Different types of Buy-Sell Agreements of Shareholders with Mandatory Redemption by Corporation on Death Shareholder with Purchase Option during Lifetime of Shareholder and Purchase Price Based on Book Value may include Cross Purchase agreements, Entity Purchase agreements, and Hybrid Purchase agreements. In a Cross Purchase agreement, the remaining shareholders purchase the shares of the deceased or retiring shareholder. In an Entity Purchase agreement, the corporation purchases the shares. In a Hybrid Purchase agreement, the remaining shareholders and the corporation purchase the shares in predetermined proportions.

A Buy-Sell Agreement of Shareholders with Mandatory Redemption by Corporation on Death Shareholder with Purchase Option during Lifetime of Shareholder and Purchase Price Based on Book Value is a legal agreement between shareholders of a company that outlines the rights and responsibilities of each party when a shareholder dies, retires, or otherwise leaves the company. The agreement typically includes provisions for the sale of the shareholder's shares to the corporation or other designated party, with a purchase price based on the book value of the shares. The agreement may also include provisions for the purchase of the shares from the shareholder during their lifetime, as well as provisions for the corporation’s mandatory purchase of the shares upon the death or retirement of the shareholder. Different types of Buy-Sell Agreements of Shareholders with Mandatory Redemption by Corporation on Death Shareholder with Purchase Option during Lifetime of Shareholder and Purchase Price Based on Book Value may include Cross Purchase agreements, Entity Purchase agreements, and Hybrid Purchase agreements. In a Cross Purchase agreement, the remaining shareholders purchase the shares of the deceased or retiring shareholder. In an Entity Purchase agreement, the corporation purchases the shares. In a Hybrid Purchase agreement, the remaining shareholders and the corporation purchase the shares in predetermined proportions.