District of Columbia Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder should the Beneficiaries of the Deceased Shareholder Desire to Sell such Shares

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• Control #: US-02629BG
• Format: Word; Rich Text

Description

A corporation whose shares are held by a single shareholder or a closely-knit group of shareholders (such as a family) is known as a close corporation. The shares of stock are not traded publicly. Many of these types of corporations are small firms that in the past would have been operated as a sole proprietorship or partnership, but have been incorporated in order to obtain the advantages of limited liability or a tax benefit or both. A buy-sell agreement is an agreement between the owners (shareholders) of a firm, defining their mutual obligations, privileges, protections, and rights. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction. The District of Columbia Shareholders' Agreement with Buy-Sell Agreement and First Right of Refusal is a legal document that outlines the rights and obligations of shareholders in a corporation, specifically in the event of a deceased shareholder's shares being sold. This agreement provides the corporation with the first opportunity to purchase the shares if the beneficiaries of the deceased shareholder intend to sell them. Several types of District of Columbia Shareholders' Agreements with Buy-Sell Agreements exist, including: 1. Standard District of Columbia Shareholders' Agreement with Buy-Sell Agreement: This agreement includes the provision for the corporation's first right of refusal to purchase the shares of a deceased shareholder. It ensures proper control and ownership of shares within the company. 2. Delaware Corporation Shareholders' Agreement with Buy-Sell Agreement: Similar to the standard District of Columbia agreement, this version is applicable to corporations formed under Delaware laws. The main difference lies in the state jurisdiction. 3. Restricted Stockholders' Agreement with Buy-Sell Agreement: This agreement is suitable when the corporation issues restricted stock to its shareholders. It outlines the specific conditions and restrictions associated with the shares and includes the first right of refusal provision. 4. Voting Shareholders' Agreement with Buy-Sell Agreement: This agreement is designed to regulate the voting rights and powers of shareholders. It incorporates the buy-sell agreement along with the first right of refusal provision to maintain control over the shares in case of a deceased shareholder. 5. Multiple Class Shareholders' Agreement with Buy-Sell Agreement: When a corporation has multiple classes of shares, this agreement covers the rights and obligations of each shareholder class. It includes the buy-sell agreement clause to ensure fairness in the purchase of shares upon the death of a shareholder. Overall, these District of Columbia Shareholders' Agreements provide clarity and structure in the event of a shareholder's death, enabling the corporation to maintain control and safeguarding the interests of all parties involved.

The District of Columbia Shareholders' Agreement with Buy-Sell Agreement and First Right of Refusal is a legal document that outlines the rights and obligations of shareholders in a corporation, specifically in the event of a deceased shareholder's shares being sold. This agreement provides the corporation with the first opportunity to purchase the shares if the beneficiaries of the deceased shareholder intend to sell them. Several types of District of Columbia Shareholders' Agreements with Buy-Sell Agreements exist, including: 1. Standard District of Columbia Shareholders' Agreement with Buy-Sell Agreement: This agreement includes the provision for the corporation's first right of refusal to purchase the shares of a deceased shareholder. It ensures proper control and ownership of shares within the company. 2. Delaware Corporation Shareholders' Agreement with Buy-Sell Agreement: Similar to the standard District of Columbia agreement, this version is applicable to corporations formed under Delaware laws. The main difference lies in the state jurisdiction. 3. Restricted Stockholders' Agreement with Buy-Sell Agreement: This agreement is suitable when the corporation issues restricted stock to its shareholders. It outlines the specific conditions and restrictions associated with the shares and includes the first right of refusal provision. 4. Voting Shareholders' Agreement with Buy-Sell Agreement: This agreement is designed to regulate the voting rights and powers of shareholders. It incorporates the buy-sell agreement along with the first right of refusal provision to maintain control over the shares in case of a deceased shareholder. 5. Multiple Class Shareholders' Agreement with Buy-Sell Agreement: When a corporation has multiple classes of shares, this agreement covers the rights and obligations of each shareholder class. It includes the buy-sell agreement clause to ensure fairness in the purchase of shares upon the death of a shareholder. Overall, these District of Columbia Shareholders' Agreements provide clarity and structure in the event of a shareholder's death, enabling the corporation to maintain control and safeguarding the interests of all parties involved.