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.
A Kentucky Stock Agreement, also known as a Buy-Sell Agreement between Shareholders and Corporation, is a legally binding document that outlines the terms and conditions governing the purchase and sale of company stock between shareholders and the corporation they own shares in. These agreements are crucial for establishing a clear framework regarding stock transfers and ensuring a smooth transition in ownership. There are various types of Kentucky Stock Agreements — Buy-Sell Agreements between Shareholders and Corporation, each catering to specific needs and circumstances. Some different types include: 1. Cross-Purchase Agreement: This type of agreement allows individual shareholders to buy the stock of other shareholders in the event of death, retirement, disability, or voluntary sale. It typically includes pre-determined formulas or valuation methods to determine the stock's price. 2. Entity Redemption Agreement: In this agreement, the corporation agrees to repurchase a shareholder's stock upon the occurrence of specified triggering events. This can include the shareholder's death, disability, or desire to sell their shares. 3. One-Way Buy-Sell Agreement: These agreements are typically used in situations where one shareholder wishes to buy out the shares of another. This type of agreement is particularly useful in cases of shareholder dispute or when a shareholder wants to voluntarily exit the company. 4. Two-Way Buy-Sell Agreement: This type of agreement ensures that both shareholders have the opportunity to buy each other's shares in specific circumstances, such as retirement, disability, or voluntary sale. It provides an equal opportunity for both parties to buy the stock of the other shareholder. 5. Right of First Refusal Agreement: This agreement grants the corporation or other shareholders the right to purchase a selling shareholder's stock before it is offered to outside buyers. It gives existing shareholders the opportunity to maintain control and prevent unwanted individuals from becoming shareholders. Kentucky Stock Agreements — Buy-Sell Agreements between Shareholders and Corporation typically include provisions regarding the purchase price, valuation methods, payment terms, decision-making processes, restrictions on transfer, triggering events, dispute resolution mechanisms, and confidentiality provisions. These agreements are essential for maintaining the stability and smooth operation of a corporation while protecting the interests of shareholders and the corporation itself.A Kentucky Stock Agreement, also known as a Buy-Sell Agreement between Shareholders and Corporation, is a legally binding document that outlines the terms and conditions governing the purchase and sale of company stock between shareholders and the corporation they own shares in. These agreements are crucial for establishing a clear framework regarding stock transfers and ensuring a smooth transition in ownership. There are various types of Kentucky Stock Agreements — Buy-Sell Agreements between Shareholders and Corporation, each catering to specific needs and circumstances. Some different types include: 1. Cross-Purchase Agreement: This type of agreement allows individual shareholders to buy the stock of other shareholders in the event of death, retirement, disability, or voluntary sale. It typically includes pre-determined formulas or valuation methods to determine the stock's price. 2. Entity Redemption Agreement: In this agreement, the corporation agrees to repurchase a shareholder's stock upon the occurrence of specified triggering events. This can include the shareholder's death, disability, or desire to sell their shares. 3. One-Way Buy-Sell Agreement: These agreements are typically used in situations where one shareholder wishes to buy out the shares of another. This type of agreement is particularly useful in cases of shareholder dispute or when a shareholder wants to voluntarily exit the company. 4. Two-Way Buy-Sell Agreement: This type of agreement ensures that both shareholders have the opportunity to buy each other's shares in specific circumstances, such as retirement, disability, or voluntary sale. It provides an equal opportunity for both parties to buy the stock of the other shareholder. 5. Right of First Refusal Agreement: This agreement grants the corporation or other shareholders the right to purchase a selling shareholder's stock before it is offered to outside buyers. It gives existing shareholders the opportunity to maintain control and prevent unwanted individuals from becoming shareholders. Kentucky Stock Agreements — Buy-Sell Agreements between Shareholders and Corporation typically include provisions regarding the purchase price, valuation methods, payment terms, decision-making processes, restrictions on transfer, triggering events, dispute resolution mechanisms, and confidentiality provisions. These agreements are essential for maintaining the stability and smooth operation of a corporation while protecting the interests of shareholders and the corporation itself.
