British Columbia Shareholder Buy-Sell Agreement

These optional buy-sell provisions can be inserted into a Shareholder Agreement to provide for the purchase and sale of shares among the shareholders of a company.

• The remaining shareholders have right of first refusal to purchase a departing shareholder's shares.
• Any buy-sell offers made during the notice period are irrevocable.
• The purchase price must be paid in full on closing.
• These Shareholder Agreement Buy-Sell Provisions are generic (not country-specific) and can be used in many jurisdictions.
• Available as a downloadable MS Word file.

Learn how to prepare a Shareholder Buy-Sell Agreement with this checklist for Canadian companies.

• What would happen to your business if one of the owners dies or is no longer able to work? A Shareholder Buy-Sell Agreement provides for continuity of the business in those events. Topics included in the Checklist are:
  • qualification of shares for capital gains exemption;
  • provisions of any existing formal shareholder agreement;
  • terms of purchase or redemption (or both) of a deceased shareholder's shares using proceeds of life insurance policies on the life of the deceased;
  • whether life insurance policies will be held by the corporation, by the other shareholders or by a trustee.
• This is a fully editable legal form in MS Word format which can be customized to fit your circumstances.
• Governed by Canadian tax laws and ntended to be used only in Canada.

Research the issues you need to consider when preparing a shareholder agreement for your company with this Shareholder Agreement Checklist, which covers:

• The share capital of the corporation.
• Composition and powers of the board of directors.
• The corporation's dividend policy.
• Circumstances when additional shareholder capital may be required.
• Procedures for issuing new shares and transferring existing shares.
• Buy-sell provisions governing departing shareholders.

A shareholder agreement is an important legal document for the corporation and its investors. Use the Checklist to make sure you don't leave out any essential items, then purchase the right Shareholder Agreement to suit your needs.

Prepare a Shotgun Buy-Sell Provision for a shareholder agreement with this ready-made template.

• The shotgun provision gives a shareholder the right to offer to purchase the shares held by the other shareholders at a specified price. If they do not accept the offer, the offering party must sell its shareholdings to the remaining shareholders.
• These buy-sell provisions set out:
  • the procedure to be followed by a shareholder when making an offer to purchase the other shareholders' interests,
  • the terms on which any offer to purchase or offer to sell must be made,
  • the rights and remedies available to the non-defaulting party upon default by either the purchaser or the seller.
• This template is available as a downloadable MS Word file.