Oklahoma 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. The Oklahoma Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder is a legally binding contract that outlines the terms and conditions for the transfer of shares in a corporation in the event of a shareholder's death. This agreement is important to protect the interests of both the corporation and the beneficiaries of the deceased shareholder. The purpose of this agreement is to ensure that the corporation has the first right to purchase the shares of a deceased shareholder if the beneficiaries of the deceased shareholder decide to sell them. This provides the corporation with an opportunity to maintain control and stability within the company by preventing the shares from falling into the hands of outside individuals or entities. There are different types of Oklahoma Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder. These may include: 1. Cross-purchase agreement: In this type of agreement, the remaining shareholders in the corporation have the first right to purchase the shares of the deceased shareholder. Each shareholder has the option to buy a proportional share of the deceased shareholder's stock. 2. Stock redemption agreement: With this agreement, the corporation itself has the first right to purchase the shares of the deceased shareholder. The corporation buys back the shares and cancels them, effectively reducing the number of outstanding shares. 3. Hybrid agreement: This agreement combines elements of both the cross-purchase and the stock redemption agreements. It allows the remaining shareholders and the corporation to have the first right of refusal to purchase the shares of the deceased shareholder, depending on specific circumstances outlined in the agreement. The provision granting the first right of refusal to the corporation gives it the opportunity to maintain ownership control, prevent unwanted shareholders, or outsiders from becoming part of the corporation, and ensure a smooth transfer of shares within the company. It is crucial for all shareholders to carefully review and understand the terms and conditions of the Oklahoma Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder. It is recommended to seek legal counsel to draft or review such agreements to ensure compliance with the applicable laws and to protect the interests of all parties involved.

The Oklahoma Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder is a legally binding contract that outlines the terms and conditions for the transfer of shares in a corporation in the event of a shareholder's death. This agreement is important to protect the interests of both the corporation and the beneficiaries of the deceased shareholder. The purpose of this agreement is to ensure that the corporation has the first right to purchase the shares of a deceased shareholder if the beneficiaries of the deceased shareholder decide to sell them. This provides the corporation with an opportunity to maintain control and stability within the company by preventing the shares from falling into the hands of outside individuals or entities. There are different types of Oklahoma Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder. These may include: 1. Cross-purchase agreement: In this type of agreement, the remaining shareholders in the corporation have the first right to purchase the shares of the deceased shareholder. Each shareholder has the option to buy a proportional share of the deceased shareholder's stock. 2. Stock redemption agreement: With this agreement, the corporation itself has the first right to purchase the shares of the deceased shareholder. The corporation buys back the shares and cancels them, effectively reducing the number of outstanding shares. 3. Hybrid agreement: This agreement combines elements of both the cross-purchase and the stock redemption agreements. It allows the remaining shareholders and the corporation to have the first right of refusal to purchase the shares of the deceased shareholder, depending on specific circumstances outlined in the agreement. The provision granting the first right of refusal to the corporation gives it the opportunity to maintain ownership control, prevent unwanted shareholders, or outsiders from becoming part of the corporation, and ensure a smooth transfer of shares within the company. It is crucial for all shareholders to carefully review and understand the terms and conditions of the Oklahoma Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder. It is recommended to seek legal counsel to draft or review such agreements to ensure compliance with the applicable laws and to protect the interests of all parties involved.