Nassau New York Buy-Sell Agreement between Shareholders of Closely Held Corporation

• Category: Corporations - Buy Sell
• State: Multi-State
• County: Nassau
• Control #: US-02462BG
• Format: Word; PDF; 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. Nassau New York Buy-Sell Agreement between Shareholders of Closely Held Corporation is a legally binding contract that outlines the terms and conditions for shareholders in a closely held corporation to buy or sell their shares under specified circumstances. This agreement is particularly beneficial for closely held corporations in Nassau, New York, as it ensures a smooth transition of ownership and protects the interests of all shareholders involved. Keywords: Nassau New York, Buy-Sell Agreement, Shareholders, Closely Held Corporation. There are various types of Nassau New York Buy-Sell Agreements between Shareholders of Closely Held Corporations, each serving a specific purpose and addressing different scenarios. Some commonly recognized types are: 1. Cross-Purchase Agreement: This type of agreement allows individual shareholders to buy the shares of another shareholder who wishes to sell, typically in proportion to their existing ownership percentages. It provides a mechanism for maintaining the desired ownership structure within the closely held corporation. 2. Entity-Purchase Agreement: Also known as stock redemption agreement, this type of agreement allows the corporation itself to buy the shares of a shareholder who wishes to sell. The corporation then becomes the owner of those shares, effectively reducing the number of shareholders. 3. Wait-and-See Agreement: In a closely held corporation, shareholders may choose to include a wait-and-see provision in the buy-sell agreement. It gives existing shareholders the option to purchase the shares of a shareholder who wants to sell, but only after a specified waiting period. This type of agreement provides time for evaluation and financial planning before deciding whether to exercise the buy-sell option. 4. Hybrid Agreement: A hybrid agreement combines elements of the cross-purchase and entity-purchase agreements. It allows both individual shareholders and the corporation itself to buy shares from a selling shareholder based on predetermined conditions. This type of agreement provides flexibility and options for shareholders when triggering a buy-sell event. It is important for shareholders contemplating a Nassau New York Buy-Sell Agreement to seek professional legal and financial advice to ensure that their agreement complies with local laws, addresses specific company needs, and protects the interests of all parties involved.

Nassau New York Buy-Sell Agreement between Shareholders of Closely Held Corporation is a legally binding contract that outlines the terms and conditions for shareholders in a closely held corporation to buy or sell their shares under specified circumstances. This agreement is particularly beneficial for closely held corporations in Nassau, New York, as it ensures a smooth transition of ownership and protects the interests of all shareholders involved. Keywords: Nassau New York, Buy-Sell Agreement, Shareholders, Closely Held Corporation. There are various types of Nassau New York Buy-Sell Agreements between Shareholders of Closely Held Corporations, each serving a specific purpose and addressing different scenarios. Some commonly recognized types are: 1. Cross-Purchase Agreement: This type of agreement allows individual shareholders to buy the shares of another shareholder who wishes to sell, typically in proportion to their existing ownership percentages. It provides a mechanism for maintaining the desired ownership structure within the closely held corporation. 2. Entity-Purchase Agreement: Also known as stock redemption agreement, this type of agreement allows the corporation itself to buy the shares of a shareholder who wishes to sell. The corporation then becomes the owner of those shares, effectively reducing the number of shareholders. 3. Wait-and-See Agreement: In a closely held corporation, shareholders may choose to include a wait-and-see provision in the buy-sell agreement. It gives existing shareholders the option to purchase the shares of a shareholder who wants to sell, but only after a specified waiting period. This type of agreement provides time for evaluation and financial planning before deciding whether to exercise the buy-sell option. 4. Hybrid Agreement: A hybrid agreement combines elements of the cross-purchase and entity-purchase agreements. It allows both individual shareholders and the corporation itself to buy shares from a selling shareholder based on predetermined conditions. This type of agreement provides flexibility and options for shareholders when triggering a buy-sell event. It is important for shareholders contemplating a Nassau New York Buy-Sell Agreement to seek professional legal and financial advice to ensure that their agreement complies with local laws, addresses specific company needs, and protects the interests of all parties involved.