In Wisconsin, a Shareholders Buy Sell Agreement (also known as a Buyout Agreement or a Buy and Sell Agreement) is a legally binding contract designed for close corporations. It governs the buying and selling of stock among shareholders, especially in situations such as retirement, death, disability, or divorce. This agreement is especially crucial when spouses own stock in a close corporation. A Wisconsin Shareholders Buy Sell Agreement with Agreement of Spouse and Stock Transfer Restrictions outlines the rules and procedures for transferring shares between shareholders, while also addressing the involvement of a spouse in these transactions. It aims to ensure the smooth transition of ownership and protect the interests of both parties involved. Keywords: Wisconsin, Shareholders Buy Sell Agreement, Stock, Close Corporation, Agreement of Spouse, Stock Transfer Restrictions, Buyout Agreement, Buy and Sell Agreement, Transfer of Shares, Retirement, Death, Disability, Divorce, Smooth Transition, Ownership, Interests. Different Types of Wisconsin Shareholders Buy Sell Agreements with Agreement of Spouse and Stock Transfer Restrictions may include: 1. Cross-Purchase Agreement: Shareholders agree to purchase the shares of a departing or deceased shareholder, which can be advantageous when there are only a few shareholders involved. 2. Stock Redemption Agreement: The corporation itself agrees to redeem the shares of a departing or deceased shareholder, allowing the remaining shareholders to maintain control. This type of agreement is useful when multiple shareholders are involved, and it allows the corporation to repurchase the stock. 3. Hybrid Agreement: This type of agreement combines elements of both the cross-purchase and stock redemption agreements. It provides shareholders with the flexibility to choose whether they want to buy the shares themselves or have the corporation repurchase them. Additional Considerations for Wisconsin Shareholders Buy Sell Agreements: 1. Pricing Methodology: The agreement should specify the valuation method for determining the price of the stock, such as fair market value or a formula based on financial ratios. 2. Funding Mechanism: The agreement should establish how the buying shareholder(s) will finance the purchase, whether through personal funds, loans, or through the corporation itself. 3. Restrictions on Transfers: Stock transfer restrictions prevent shareholders from selling or transferring their shares to third parties without the consent of other shareholders, ensuring that ownership remains within the close-knit group. 4. Spousal Consent: The agreement should address the involvement of spouses in share transfers, requiring their consent or acknowledgment regarding any buyout or transfer transactions. Overall, a Wisconsin Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse and Stock Transfer Restrictions is a vital legal document that protects the interests of all parties involved, outlines the rules and procedures for stock transfers, addresses the involvement of spouses, and ensures a smooth transition of ownership within a closely held corporation.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.