Stock Redemption Agreement Between Corporation and Stockholder

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• Control #: US-0912BG
• Format: Word; Rich Text

Description Share Redemption Agreement

A stock redemption agreement is a contractual arrangement between the shareholders and a close corporation. In the agreement, the close corporation is obligated to redeem the shares of the deceased, withdrawing or disabled shareholder. Retirement, death and disability tend to be the three most common withdrawal events found in buy-sell agreements, but corporations are not limited to those three and are free to mix and match as they see fit.

A Stock Redemption Agreement Between Corporation and Stockholder is a legal document that defines the rights and responsibilities of both parties when a stockholder decides to redeem some or all of their shares from a corporation. The agreement typically outlines the shares to be redeemed, the price at which the shares will be redeemed, the payment terms, and any other relevant details. The agreement will also determine who will be responsible for any taxes, fees, or other costs associated with the redemption. There are two types of Stock Redemption Agreements Between Corporation and Stockholder: Standard agreements and custom agreements. Standard agreements are pre-drafted documents that are used by most companies, while custom agreements are drafted to suit the specific needs of the particular parties involved in the transaction.