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.
Oklahoma Stock Agreement, also known as the Buy Sell Agreement between Shareholders and Corporation, is a legally binding contract that outlines the terms and conditions for the purchase and sale of stock between shareholders and a corporation in the state of Oklahoma. This agreement serves to provide clarity and protection to both parties in the event of a shareholder's desire to sell their stock or a corporation's need to repurchase the stock. The Oklahoma Stock Agreement typically includes several key provisions such as: 1. Stock Transfer Restrictions: The agreement often imposes restrictions on the transfer of shares, requiring shareholders to offer their shares to the corporation or other shareholders first, before offering it to any external party. This provision helps maintain stability within the corporation and prevents unwanted third-party ownership. 2. Purchase Price Determination: The agreement establishes a mechanism for determining the purchase price of stock being bought or sold. Various valuation methods can be used, such as fair market value, book value, or a pre-agreed formula. This ensures a fair and transparent process for both parties involved. 3. Mandatory Buyouts: In certain situations, such as the death, disability, retirement, or termination of a shareholder, the agreement may include provisions for a mandatory buyout by the corporation or remaining shareholders. This provision prevents unwanted or incompatible shareholders from retaining ownership in the corporation. 4. Funding Mechanisms: The agreement may stipulate the methods for funding the purchase of stock. It could include options like cash payments, installment payments, promissory notes, or the use of insurance policies. 5. Dispute Resolution: To address potential disputes, the agreement can outline the procedures for resolving disagreements, including mediation, arbitration, or litigation. This ensures that any conflicts related to the stock sale are resolved efficiently and according to the agreed-upon process. 6. Right of First Refusal: The right of first refusal is a common provision in Oklahoma Stock Agreements that grants the corporation or other shareholders the option to purchase a shareholder's stock before it is offered to any third-party buyer. This provision helps maintain control and ownership within the corporation's existing shareholder base. Types of Oklahoma Stock Agreements — Buy Sell Agreements between Shareholders and Corporation may include: 1. Cross-Purchase Agreement: In this type of agreement, each shareholder agrees to buy the stock of a departing shareholder. For example, if Shareholder A decides to sell their stock, Shareholder B and C would have the right to purchase the shares. 2. Stock Redemption Agreement: This type of agreement allows the corporation to redeem the stock directly from the departing shareholder. The corporation repurchases the stock and becomes the sole owner. 3. Hybrid Agreement: Some agreements combine elements of both the cross-purchase and stock redemption agreements. The decision to purchase the stock can be shared between the remaining shareholders and the corporation, following predetermined rules and procedures. In conclusion, an Oklahoma Stock Agreement — Buy Sell Agreement between Shareholders and Corporation is a crucial legal document for ensuring a smooth and regulated process for buying and selling stock within a corporation. Different types of these agreements include the cross-purchase agreement, stock redemption agreement, and hybrid agreement.Oklahoma Stock Agreement, also known as the Buy Sell Agreement between Shareholders and Corporation, is a legally binding contract that outlines the terms and conditions for the purchase and sale of stock between shareholders and a corporation in the state of Oklahoma. This agreement serves to provide clarity and protection to both parties in the event of a shareholder's desire to sell their stock or a corporation's need to repurchase the stock. The Oklahoma Stock Agreement typically includes several key provisions such as: 1. Stock Transfer Restrictions: The agreement often imposes restrictions on the transfer of shares, requiring shareholders to offer their shares to the corporation or other shareholders first, before offering it to any external party. This provision helps maintain stability within the corporation and prevents unwanted third-party ownership. 2. Purchase Price Determination: The agreement establishes a mechanism for determining the purchase price of stock being bought or sold. Various valuation methods can be used, such as fair market value, book value, or a pre-agreed formula. This ensures a fair and transparent process for both parties involved. 3. Mandatory Buyouts: In certain situations, such as the death, disability, retirement, or termination of a shareholder, the agreement may include provisions for a mandatory buyout by the corporation or remaining shareholders. This provision prevents unwanted or incompatible shareholders from retaining ownership in the corporation. 4. Funding Mechanisms: The agreement may stipulate the methods for funding the purchase of stock. It could include options like cash payments, installment payments, promissory notes, or the use of insurance policies. 5. Dispute Resolution: To address potential disputes, the agreement can outline the procedures for resolving disagreements, including mediation, arbitration, or litigation. This ensures that any conflicts related to the stock sale are resolved efficiently and according to the agreed-upon process. 6. Right of First Refusal: The right of first refusal is a common provision in Oklahoma Stock Agreements that grants the corporation or other shareholders the option to purchase a shareholder's stock before it is offered to any third-party buyer. This provision helps maintain control and ownership within the corporation's existing shareholder base. Types of Oklahoma Stock Agreements — Buy Sell Agreements between Shareholders and Corporation may include: 1. Cross-Purchase Agreement: In this type of agreement, each shareholder agrees to buy the stock of a departing shareholder. For example, if Shareholder A decides to sell their stock, Shareholder B and C would have the right to purchase the shares. 2. Stock Redemption Agreement: This type of agreement allows the corporation to redeem the stock directly from the departing shareholder. The corporation repurchases the stock and becomes the sole owner. 3. Hybrid Agreement: Some agreements combine elements of both the cross-purchase and stock redemption agreements. The decision to purchase the stock can be shared between the remaining shareholders and the corporation, following predetermined rules and procedures. In conclusion, an Oklahoma Stock Agreement — Buy Sell Agreement between Shareholders and Corporation is a crucial legal document for ensuring a smooth and regulated process for buying and selling stock within a corporation. Different types of these agreements include the cross-purchase agreement, stock redemption agreement, and hybrid agreement.
