New Hampshire 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. A New Hampshire Shareholders' Agreement with a Buy-Sell Agreement Allowing the Corporation the First Right of Refusal to Purchase the Shares of a Deceased Shareholder is a legal document that outlines the terms and conditions regarding the transfer of shares owned by a deceased shareholder in a corporation. This agreement is relevant for businesses operating in New Hampshire and is useful in protecting the interests of both the corporation and the beneficiaries of a deceased shareholder. Under this agreement, the corporation is given the first right of refusal to purchase the shares owned by the deceased shareholder when the beneficiaries decide to sell them. The purpose of this provision is to allow the corporation to maintain control over its ownership structure and ensure that shares do not end up with outsiders without the corporation's approval. The agreement usually includes several key elements to ensure a smooth transfer process. These elements may include: 1. Right of First Refusal: This provision grants the corporation the opportunity to purchase the shares before they are offered to any third parties, protecting the integrity and ownership continuity of the corporation. 2. Purchase Price: The agreement establishes the mechanism to determine the fair market value of the shares to be sold, ensuring a fair transaction for both parties. This can be based on an independent appraisal or a predetermined formula agreed upon in advance. 3. Notice Requirements: The agreement sets out the process in which the beneficiaries must notify the corporation of their intention to sell the shares. This is typically done in writing, providing the corporation with a specified timeframe to exercise its right of refusal. 4. Option Expiration: If the corporation decides not to exercise its right of refusal, the agreement may stipulate a specific period within which the beneficiaries may proceed with selling the shares to a third party. It is important to note that the specific terms and conditions of the New Hampshire Shareholders' Agreement with a Buy-Sell Agreement Allowing the Corporation the First Right of Refusal to Purchase the Shares of a Deceased Shareholder can vary based on the needs and preferences of the parties involved. Different types or variations of this agreement may exist, tailored to the specific requirements of the corporation and the shareholders. Some possible variations of a New Hampshire Shareholders' Agreement with Buy-Sell Agreement Allowing the Corporation the First Right of Refusal to Purchase the Shares of a Deceased Shareholder may include agreements with different triggers for the right of refusal, such as retirement, disability, or termination of employment. These variations may also include different methods for valuing the shares, including a fixed price or a predetermined formula based on financial metrics. In conclusion, the New Hampshire Shareholders' Agreement with a Buy-Sell Agreement Allowing the Corporation the First Right of Refusal to Purchase the Shares of a Deceased Shareholder is a crucial legal document designed to protect the interests of both the corporation and the beneficiaries of a deceased shareholder. It ensures the orderly transfer of shares and safeguards the corporation's control over its ownership structure.

A New Hampshire Shareholders' Agreement with a Buy-Sell Agreement Allowing the Corporation the First Right of Refusal to Purchase the Shares of a Deceased Shareholder is a legal document that outlines the terms and conditions regarding the transfer of shares owned by a deceased shareholder in a corporation. This agreement is relevant for businesses operating in New Hampshire and is useful in protecting the interests of both the corporation and the beneficiaries of a deceased shareholder. Under this agreement, the corporation is given the first right of refusal to purchase the shares owned by the deceased shareholder when the beneficiaries decide to sell them. The purpose of this provision is to allow the corporation to maintain control over its ownership structure and ensure that shares do not end up with outsiders without the corporation's approval. The agreement usually includes several key elements to ensure a smooth transfer process. These elements may include: 1. Right of First Refusal: This provision grants the corporation the opportunity to purchase the shares before they are offered to any third parties, protecting the integrity and ownership continuity of the corporation. 2. Purchase Price: The agreement establishes the mechanism to determine the fair market value of the shares to be sold, ensuring a fair transaction for both parties. This can be based on an independent appraisal or a predetermined formula agreed upon in advance. 3. Notice Requirements: The agreement sets out the process in which the beneficiaries must notify the corporation of their intention to sell the shares. This is typically done in writing, providing the corporation with a specified timeframe to exercise its right of refusal. 4. Option Expiration: If the corporation decides not to exercise its right of refusal, the agreement may stipulate a specific period within which the beneficiaries may proceed with selling the shares to a third party. It is important to note that the specific terms and conditions of the New Hampshire Shareholders' Agreement with a Buy-Sell Agreement Allowing the Corporation the First Right of Refusal to Purchase the Shares of a Deceased Shareholder can vary based on the needs and preferences of the parties involved. Different types or variations of this agreement may exist, tailored to the specific requirements of the corporation and the shareholders. Some possible variations of a New Hampshire Shareholders' Agreement with Buy-Sell Agreement Allowing the Corporation the First Right of Refusal to Purchase the Shares of a Deceased Shareholder may include agreements with different triggers for the right of refusal, such as retirement, disability, or termination of employment. These variations may also include different methods for valuing the shares, including a fixed price or a predetermined formula based on financial metrics. In conclusion, the New Hampshire Shareholders' Agreement with a Buy-Sell Agreement Allowing the Corporation the First Right of Refusal to Purchase the Shares of a Deceased Shareholder is a crucial legal document designed to protect the interests of both the corporation and the beneficiaries of a deceased shareholder. It ensures the orderly transfer of shares and safeguards the corporation's control over its ownership structure.