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 Mexico Stock Agreement, also known as a Buy-Sell Agreement between Shareholders and Corporation, is a legally binding contract that outlines the process of buying and selling stock between the shareholders and the corporation in the state of New Mexico. It serves as a mechanism for regulating the transfer of shares, ownership rights, and the general operation of a corporation. This agreement is specifically designed to address the unique needs and requirements of New Mexico corporations and shareholders. It ensures that the transfer of stock is conducted in a fair and organized manner, while also protecting the interests of all parties involved. The agreement can be customized to suit the particular needs and preferences of the corporation and its shareholders. The New Mexico Stock Agreement — Buy-Sell Agreement between Shareholders and Corporation typically includes clauses covering various aspects, such as: 1. Stock Transfer Process: This clause outlines the specific procedures and requirements for transferring stock within the corporation. It includes the process for obtaining approval, the calculation of stock value, and any necessary documentation. 2. Shareholder Obligations: This section outlines the obligations and responsibilities of the shareholders regarding the transfer of stock. It may include restrictions on the transfer of shares to third parties, requirements for offering shares to existing shareholders first, or imposing certain conditions for the sale of stock. 3. Stock Valuation: This clause specifies the method for determining the value of the stock during transfers. Common methods include book value, fair market value, or a predetermined formula agreed upon by the shareholders. 4. Dispute Resolution: In the event of disagreements or disputes between shareholders and the corporation, this clause outlines the mechanism for resolving such conflicts. It may include provisions for mediation, arbitration, or other alternative dispute resolution methods. 5. Triggering Events: This section identifies specific events that may trigger the buy-sell agreement, such as death, disability, retirement, or voluntary withdrawal of a shareholder. It establishes the procedures and terms for the purchase or sale of stock under these circumstances.A New Mexico Stock Agreement, also known as a Buy-Sell Agreement between Shareholders and Corporation, is a legally binding contract that outlines the process of buying and selling stock between the shareholders and the corporation in the state of New Mexico. It serves as a mechanism for regulating the transfer of shares, ownership rights, and the general operation of a corporation. This agreement is specifically designed to address the unique needs and requirements of New Mexico corporations and shareholders. It ensures that the transfer of stock is conducted in a fair and organized manner, while also protecting the interests of all parties involved. The agreement can be customized to suit the particular needs and preferences of the corporation and its shareholders. The New Mexico Stock Agreement — Buy-Sell Agreement between Shareholders and Corporation typically includes clauses covering various aspects, such as: 1. Stock Transfer Process: This clause outlines the specific procedures and requirements for transferring stock within the corporation. It includes the process for obtaining approval, the calculation of stock value, and any necessary documentation. 2. Shareholder Obligations: This section outlines the obligations and responsibilities of the shareholders regarding the transfer of stock. It may include restrictions on the transfer of shares to third parties, requirements for offering shares to existing shareholders first, or imposing certain conditions for the sale of stock. 3. Stock Valuation: This clause specifies the method for determining the value of the stock during transfers. Common methods include book value, fair market value, or a predetermined formula agreed upon by the shareholders. 4. Dispute Resolution: In the event of disagreements or disputes between shareholders and the corporation, this clause outlines the mechanism for resolving such conflicts. It may include provisions for mediation, arbitration, or other alternative dispute resolution methods. 5. Triggering Events: This section identifies specific events that may trigger the buy-sell agreement, such as death, disability, retirement, or voluntary withdrawal of a shareholder. It establishes the procedures and terms for the purchase or sale of stock under these circumstances.
