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 Nebraska Stock Agreement, also known as a Buy-Sell Agreement between Shareholders and a Corporation, is a legal document that outlines the terms and conditions related to the purchase and sale of stock shares between shareholders and the corporation in the state of Nebraska. This agreement serves as a protective mechanism for both parties involved and helps establish a framework for future stock transactions. The Nebraska Stock Agreement typically includes essential details such as the names and contact information of the parties involved, the number of shares being transacted, the purchase price or valuation method, and the conditions under which the stock sale can take place. It also outlines the procedures for determining the fair value of the stock shares during a sale, including any necessary appraisal processes or dispute resolution mechanisms. Moreover, the agreement may cover different scenarios that might trigger a stock sale, such as the death, disability, retirement, or withdrawal of a shareholder. This ensures that the corporation retains the ability to repurchase the stock upon the occurrence of certain events, maintaining control and stability within the company. Different types or variations of Nebraska Stock Agreements — Buy-Sell Agreements exist to cater to the unique needs of shareholders and corporations. These may include: 1. Cross-Purchase Agreement: This type of agreement allows individual shareholders of the corporation to buy and sell shares among themselves. In the event of a triggering event, the remaining shareholders have the first opportunity to purchase the departing shareholder's stock. 2. Entity Purchase Agreement: In this alternative arrangement, the corporation itself has the right and obligation to purchase stock shares from the departing shareholder. The corporation becomes the buyer, and the remaining shareholders' ownership stakes are proportionately increased. 3. Wait-and-See Agreement: This hybrid agreement combines elements of both the cross-purchase and entity purchase agreements. It allows the remaining shareholders to decide whether they want to purchase the departing shareholder's stock on an individual basis or have the corporation buy it. 4. One-Way Agreement: Unlike the previous agreements, a one-way buy-sell agreement involves only one party, either the shareholders or the corporation, having the right or obligation to buy or sell shares. This agreement typically benefits the party with the financial means to participate in the transaction. These different types of Nebraska Stock Agreements — Buy-Sell Agreements enable shareholders and corporations to customize the terms of their stock transactions, ensuring a fair and agreeable process for all parties involved. It is crucial for individuals to consult with legal professionals to create an agreement that best suits their specific needs and circumstances.A Nebraska Stock Agreement, also known as a Buy-Sell Agreement between Shareholders and a Corporation, is a legal document that outlines the terms and conditions related to the purchase and sale of stock shares between shareholders and the corporation in the state of Nebraska. This agreement serves as a protective mechanism for both parties involved and helps establish a framework for future stock transactions. The Nebraska Stock Agreement typically includes essential details such as the names and contact information of the parties involved, the number of shares being transacted, the purchase price or valuation method, and the conditions under which the stock sale can take place. It also outlines the procedures for determining the fair value of the stock shares during a sale, including any necessary appraisal processes or dispute resolution mechanisms. Moreover, the agreement may cover different scenarios that might trigger a stock sale, such as the death, disability, retirement, or withdrawal of a shareholder. This ensures that the corporation retains the ability to repurchase the stock upon the occurrence of certain events, maintaining control and stability within the company. Different types or variations of Nebraska Stock Agreements — Buy-Sell Agreements exist to cater to the unique needs of shareholders and corporations. These may include: 1. Cross-Purchase Agreement: This type of agreement allows individual shareholders of the corporation to buy and sell shares among themselves. In the event of a triggering event, the remaining shareholders have the first opportunity to purchase the departing shareholder's stock. 2. Entity Purchase Agreement: In this alternative arrangement, the corporation itself has the right and obligation to purchase stock shares from the departing shareholder. The corporation becomes the buyer, and the remaining shareholders' ownership stakes are proportionately increased. 3. Wait-and-See Agreement: This hybrid agreement combines elements of both the cross-purchase and entity purchase agreements. It allows the remaining shareholders to decide whether they want to purchase the departing shareholder's stock on an individual basis or have the corporation buy it. 4. One-Way Agreement: Unlike the previous agreements, a one-way buy-sell agreement involves only one party, either the shareholders or the corporation, having the right or obligation to buy or sell shares. This agreement typically benefits the party with the financial means to participate in the transaction. These different types of Nebraska Stock Agreements — Buy-Sell Agreements enable shareholders and corporations to customize the terms of their stock transactions, ensuring a fair and agreeable process for all parties involved. It is crucial for individuals to consult with legal professionals to create an agreement that best suits their specific needs and circumstances.
