Products tagged with 'shareholder buy-sell agreement'

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Shareholder Agreement with Put Option | Canada

This is a Canadian legal form which can be used anywhere in Canada except Quebec.
The Shareholder Agreement establishes the obligations of the shareholders and the corporation to each other, and sets out any restrictions on share transfers or the issue of new shares.
The remaining shareholders have a right of first refusal to acquire the shares of a departing shareholder, before the shares can be offered to a third party.
A departing shareholder also has a buy-sell or 'put' option, which would require the remaining shareholders to purchase his/her shares. The put option is available only after the departing shareholder has been unsuccessful in finding a third party purchaser for a period of 6 months.
The template contains buy-sell options for both an assured buy-out and a mandatory or 'shotgun' buy-sell.
If a shareholder dies, the surviving shareholders have the option to buy the deceased shareholder's shares, failing which they must be purchased by the corporation.
The Shareholder Agreement can serve to avoid unnecessary conflict by having the owners agree on management issues and exit strategies at the outset.

$29.99

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.

$6.29

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

The shareholders have appointed a trustee for the purpose of holding life insurance policies on each shareholder in trust to the benefit of the other shareholders.
If a shareholder dies, the trustee, on behalf of the surviving shareholders, will purchase the deceased's shares in the company 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

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

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