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Shareholder Buy-Sell Agreement (Promissory Note Method) | Canada
Plan ahead for the continuation of your business upon the death or retirement of an owner with this Shareholder Buy-Sell Agreement (Promissory Note Method) for Canadian companies.
- The corporation will hold life insurance policies on each of the shareholders and use the proceeds to redeem and acquire its own shares from a deceased shareholder's estate.
- If a shareholder dies, the surviving shareholders can purchase the deceased's shares on a pro rata basis (proportionate to their current shareholdings) by issuing the corporation a promissory note for the purchase price.
- The corporation will loan the purchaser the amount of the purchase price from the insurance proceeds, and then makes an election for a deemed dividend to be paid from the capital dividend account if possible.
- 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.
$29.99
Checklist for Shareholder Buy-Sell Agreement | Canada
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.
$12.49
Criss-cross Shareholder Buy-Sell Agreement | Canada
Have you started succession planning for your business? Ensure continuity of ownership and management with this Criss-Cross Shareholder Buy-Sell Agreement for Canada.
- The Buy-Sell Agreement provides for the purchase of one shareholder's interest by the other shareholder upon the death of the first shareholder.
- The purchase is made by a method called the 'criss cross' method. That means that each shareholder holds a life insurance policy on the other shareholder, and the deceased shareholder's shares are purchased using the proceeds of the life insurance.
- 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.
$29.99
Shareholder Buy-Sell Agreement - Hybrid Method | Canada
The Canada Shareholder Buy-Sell Agreement (Hybrid Method) is an option that Canadians can consider to put a succession plan in place for the continuity of their small business.
- This type of buy-sell agreement is known as a 'hybrid' buy-sell.
- Under this Agreement, the corporation holds life insurance policies on each of the shareholders.
- Upon a shareholder's death, the corporation will collect the insurance proceeds, and use the proceeds to fund the purchase of the deceased shareholder's shares by any of the surviving shareholders who are interested, on a pro rata basis (proportional to their existing shareholdings).
- Any unpurchased shares will be redeemed by the corporation.
- The corporation will make an election for a deemed dividend to be paid from the capital dividend account if possible.
- The Agreement is governed by Canadian income tax laws.
- This legal contract form is available in MS word format and is fully editable.
$29.99
Shareholder Buy-Sell Agreement (Corporate Redemption Method) | Canada
Would your business survive the death or retirement of one of the owners? Provide for the continued existence of the business with this Canada Shareholder Buy-Sell Agreement (Corporate Redemption Method).
- The corporation obtains life insurance policies on each of the shareholders and uses the proceeds to fund the redemption, acquisition or cancellation of the corporation's shares.
- Upon the death of a shareholder, the corporation redeems the deceased shareholder's shares and makes an election that the deemed dividend is to be paid from the capital dividend account to the extent possible.
- The Agreement contains several different options for methods of valuating the shares.
- The Agreement is made pursuant to the Income Tax Act (Canada).
- This Shareholder Buy-Sell Agreement (Corporate Redemption Method) is available as a downloadable and fully editable MS Word template.
$29.99
