We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating with our marketing partners) and for other business use.
Click "here" to read our Cookie Policy. By clicking "Accept" you agree to the use of cookies. Read less
Read more
Accept
  • US Legal Forms
  • Buy-Sell Agreement between Two Shareholders of Closely Held...

North Dakota Buy-Sell Agreement between Two Shareholders of Closely Held Corporation

Category:
Corporations - Contracts
State:
Multi-State
Control #:
US-02553BG
Format:
Word; 
Rich Text
Instant download
Buy now

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.

A North Dakota Buy-Sell Agreement between two shareholders of a closely held corporation is a legally binding document that outlines the specifics of buying and selling shares between the shareholders in the state of North Dakota. This agreement sets forth the terms and conditions under which a shareholder may sell their shares to the other shareholder or to the corporation itself. Keywords: North Dakota, Buy-Sell Agreement, shareholders, closely held corporation, shares, terms and conditions, sell, buy, legal document There are three main types of North Dakota Buy-Sell Agreements between two shareholders of a closely held corporation that can be named: 1. Cross-Purchase Agreement: In this type of agreement, each shareholder agrees to buy the other shareholder's shares upon the occurrence of a triggering event such as death, disability, retirement, or voluntary transfer. The agreement sets the valuation of the shares and the method of payment, ensuring a smooth transition of ownership within the corporation. 2. Stock Redemption Agreement: This agreement allows the corporation itself to buy back the shares of the shareholder upon the occurrence of a triggering event. The corporation uses its own funds to repurchase the shares, which are then retired or redistributed among the remaining shareholders. 3. Hybrid Agreement: A hybrid agreement combines elements of both the Cross-Purchase Agreement and the Stock Redemption Agreement. In this type of agreement, the remaining shareholders have the first right of refusal to purchase the shares, and if they decline, the corporation has the option to repurchase the shares. It is important for shareholders of closely held corporations in North Dakota to consider implementing a Buy-Sell Agreement to protect the interests of all parties involved and to ensure a smooth transition of ownership during unexpected events. Seeking professional legal advice while drafting these agreements is highly recommended ensuring compliance with North Dakota laws and to customize the agreement to fit the specific needs of the shareholders and the corporation.

Free preview
  • Form preview
  • Form preview
  • Form preview
  • Form preview
  • Form preview
  • Form preview

Related forms

form-preview
Delaware Medicaid Client Intake Form

Delaware Medicaid Client Intake Form

View this form
form-preview
District of Columbia Medicaid Client Intake Form

District of Columbia Medicaid Client Intake Form

View this form
form-preview
Florida Medicaid Client Intake Form

Florida Medicaid Client Intake Form

View this form
form-preview
Georgia Medicaid Client Intake Form

Georgia Medicaid Client Intake Form

View this form
form-preview
Hawaii Medicaid Client Intake Form

Hawaii Medicaid Client Intake Form

View this form

Viewed forms

form-preview
Planning An Effective Annual Meeting Check...

Planning An Effective Annual Meeting Checklist

View this form
form-preview
Sample Letter for Payoff of Loan held by M...

Sample Letter for Payoff of Loan held by Mortgage Company

View this form
form-preview
Bylaws of Editworks, Ltd.

Bylaws of Editworks, Ltd.

View this form
form-preview
Equity Share Agreement

Equity Share Agreement

View this form
form-preview
Dietitian Agreement - Self-Employed Indepe...

Dietitian Agreement - Self-Employed Independent Contractor

View this form
form-preview
General Form of Amendment of Trust Agreement

General Form of Amendment of Trust Agreement

View this form

How to fill out North Dakota Buy-Sell Agreement Between Two Shareholders Of Closely Held Corporation?

You can invest time on-line searching for the authorized document format that meets the state and federal requirements you need. US Legal Forms gives a huge number of authorized kinds that happen to be examined by specialists. You can easily download or print out the North Dakota Buy-Sell Agreement between Two Shareholders of Closely Held Corporation from your service.

If you already have a US Legal Forms account, you can log in and click on the Download switch. Next, you can total, revise, print out, or signal the North Dakota Buy-Sell Agreement between Two Shareholders of Closely Held Corporation. Each and every authorized document format you purchase is the one you have for a long time. To acquire an additional version for any purchased develop, go to the My Forms tab and click on the corresponding switch.

Should you use the US Legal Forms site initially, adhere to the easy recommendations beneath:

  • Very first, ensure that you have selected the right document format for that area/city of your choice. Read the develop explanation to make sure you have picked the appropriate develop. If accessible, make use of the Preview switch to check from the document format also.
  • If you want to get an additional variation in the develop, make use of the Search discipline to get the format that fits your needs and requirements.
  • Once you have identified the format you desire, simply click Acquire now to proceed.
  • Find the rates strategy you desire, key in your accreditations, and sign up for a merchant account on US Legal Forms.
  • Complete the purchase. You may use your credit card or PayPal account to cover the authorized develop.
  • Find the structure in the document and download it in your system.
  • Make changes in your document if needed. You can total, revise and signal and print out North Dakota Buy-Sell Agreement between Two Shareholders of Closely Held Corporation.

Download and print out a huge number of document themes while using US Legal Forms site, that offers the greatest selection of authorized kinds. Use professional and status-particular themes to deal with your business or specific demands.

Form popularity

FAQ

Establish a market for the corporation's stock that might otherwise be difficult to sell; Ensure that the ownership of the business remains with individuals selected by the owners or remains closely held; Provide liquidity to the estate of a deceased shareholder to pay estate taxes and costs; and.

Events Covered Under a Buyout Agreementa divorce settlement in which a partner's ex-spouse stands to receive a partnership interest in the company. the foreclosure of a debt secured by a partnership interest. the personal bankruptcy of a partner, or. the disability, death, or incapacity of a partner.

Buyout agreement (also known as a buy-sell agreement) refers to a contract that gives rights to at least one party of the contract to buy the share, assets, or rights of another party given a specific event. These agreements can arise in a variety of contexts as stand-alone contracts or parts of larger agreements.

Definition. 1. A buy-sell agreement is an agreement among the owners of the business and the entity. 2. The buy-sell agreement usually provides for the purchase and sale of ownership interests in the business at a price determined in accordance with the agreement, upon the occurrence of certain (usually future) events.

Establish a market for the corporation's stock that might otherwise be difficult to sell; Ensure that the ownership of the business remains with individuals selected by the owners or remains closely held; Provide liquidity to the estate of a deceased shareholder to pay estate taxes and costs; and.

One common question we receive when discussing key person benefits is What is a buy/sell agreement? A buy/sell agreement, also known as a buyout agreement, is a contract funded by a life insurance policy that can help minimize the turmoil caused by the sudden departure, disability or death of a business owner or

A buy and sell agreement is a legally binding contract that stipulates how a partner's share of a business may be reassigned if that partner dies or otherwise leaves the business. Most often, the buy and sell agreement stipulates that the available share be sold to the remaining partners or to the partnership.

A good buy-sell agreement can offer business owners peace of mind and help them to avoid future conflict and retain control of their companies. Once in place, agreements should be reviewed on a regular basis or especially when there is a major change in the business or an anticipated change in ownership.

A shareholder agreement, on the other hand, is optional. This document is often by and for shareholders, outlining certain rights and obligations. It can be most helpful when a corporation has a small number of active shareholders.

A buyout agreement is a contract between the shareholders of a company. The agreement determines whether a company must buyout a departing shareholder or whether a company has the right to buyout a shareholder when a certain event, such as a shareholder's death, occurs.

North Dakota Buy-Sell Agreement between Two Shareholders of Closely Held Corporation Related Searches

  • north dakota business corporation act
  • north dakota limited liability company act
  • north dakota secretary of state
  • _______ held corporations generally do not offer stock to the general public.
  • sample exit clause in shareholders' agreement
  • 's corp. buy-sell agreement template
  • shareholders may elect directors by or by providing , which is more common for a .
  • north dakota century code
  • which of the following statements is true regarding buy-sell agreements?

More info

As a partner or co-owner (private shareholder) of a business, you've spent years building a valuable financial interest in your company. Agreement Addendum as authorized by Purchaser and Seller.A. ? This offer is not contingent upon the sale or close of property owned by Purchaser.5 pages Agreement Addendum as authorized by Purchaser and Seller.A. ? This offer is not contingent upon the sale or close of property owned by Purchaser.Create a Buy-Sell Agreement in minutes with step-by-step instructions. Use this contract to protect the shares of a business in unforeseen circumstances. Who Must File. Unless exempt under section 501, all domestic corporations (including corporations in bankruptcy) must file an income tax return ... (3) Charges by the seller for any services necessary to complete the sale, otherout-of-state retailer who does not hold a North Dakota retail sales tax ... By CD Macdonald · 1986 · Cited by 12 ? will govern every North Dakota corporation by July 1, 1986,2into consideration the duty which all shareholders in a closely held corporation owe. Once both parties have signed an offer, it is their contract to transfer ownership of the land. Entering into an agreement to buy land does not mean the ... Comprehensive discussion of how to structure buy/sell agreements. In theacquires complete ownership of the venture and the other venturer liquidates. The petitioner then redeemed 1.875 million common shares that the partnership held in exchange for $2.7 million in cash and the petitioner's obligation to ... Kortum was an at-will employee of the Corporation, and she bargained away any claim for breach of fiduciary duty by signing a shareholder buy-sell agreement.

Trusted and secure by over 3 million people of the world’s leading companies

North Dakota Buy-Sell Agreement between Two Shareholders of Closely Held Corporation
Buy now