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

• Category: Corporations - Contracts
• State: Multi-State
• County: Kings
• Control #: US-02553BG
• 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. King's New York Buy-Sell Agreement is a legal document designed specifically for shareholders of closely held corporations. This agreement serves as a tool to govern the purchase and sale of shares between two individual shareholders within the corporation. It outlines various provisions and terms that are essential to ensure a smooth transition of ownership and protect the interests of all parties involved. The agreement is tailored to address the specific needs and requirements of shareholders within the closely held corporation. It helps to establish a fair and transparent process for buying and selling shares, ensuring that both parties are treated equitably in the transaction. Under the Kings New York Buy-Sell Agreement, there are several types that can be implemented: 1. Fixed Price Agreement: This type of agreement sets a predetermined price for the shares, which remains constant regardless of market fluctuations. It provides stability and predictability in the event of a shareholder's desire to sell their shares or other triggering events. 2. Formula Agreement: In a formula agreement, the value of the shares is determined using a pre-defined formula. This formula typically considers various financial factors such as the company's earnings, book value, or a combination of different metrics. This type of agreement allows for flexibility in valuing the shares based on the company's performance. 3. Appraisal Agreement: An appraisal agreement involves obtaining a professional appraisal to determine the fair market value of the shares. This type of agreement ensures a fair valuation process, providing an impartial assessment of the shares' worth. It eliminates any potential disagreements between shareholders over the value of the shares. 4. Hybrid Agreement: A hybrid agreement combines elements from multiple types of agreements to suit the specific needs and circumstances of the closely held corporation and its shareholders. It may include a fixed price for a portion of the shares and a formula or appraisal method for the remaining portion. Regardless of the specific type, the Kings New York Buy-Sell Agreement typically includes provisions related to triggering events, such as the death, disability, retirement, or voluntary sale of a shareholder's shares. It outlines the process for initiating a buyout, including the notice period, share valuation, terms of payment, and any additional conditions or restrictions that may apply. By implementing the Kings New York Buy-Sell Agreement between two shareholders of a closely held corporation, both parties can have peace of mind knowing that there is a clear framework in place to manage the transfer of shares in a fair and efficient manner.

King's New York Buy-Sell Agreement is a legal document designed specifically for shareholders of closely held corporations. This agreement serves as a tool to govern the purchase and sale of shares between two individual shareholders within the corporation. It outlines various provisions and terms that are essential to ensure a smooth transition of ownership and protect the interests of all parties involved. The agreement is tailored to address the specific needs and requirements of shareholders within the closely held corporation. It helps to establish a fair and transparent process for buying and selling shares, ensuring that both parties are treated equitably in the transaction. Under the Kings New York Buy-Sell Agreement, there are several types that can be implemented: 1. Fixed Price Agreement: This type of agreement sets a predetermined price for the shares, which remains constant regardless of market fluctuations. It provides stability and predictability in the event of a shareholder's desire to sell their shares or other triggering events. 2. Formula Agreement: In a formula agreement, the value of the shares is determined using a pre-defined formula. This formula typically considers various financial factors such as the company's earnings, book value, or a combination of different metrics. This type of agreement allows for flexibility in valuing the shares based on the company's performance. 3. Appraisal Agreement: An appraisal agreement involves obtaining a professional appraisal to determine the fair market value of the shares. This type of agreement ensures a fair valuation process, providing an impartial assessment of the shares' worth. It eliminates any potential disagreements between shareholders over the value of the shares. 4. Hybrid Agreement: A hybrid agreement combines elements from multiple types of agreements to suit the specific needs and circumstances of the closely held corporation and its shareholders. It may include a fixed price for a portion of the shares and a formula or appraisal method for the remaining portion. Regardless of the specific type, the Kings New York Buy-Sell Agreement typically includes provisions related to triggering events, such as the death, disability, retirement, or voluntary sale of a shareholder's shares. It outlines the process for initiating a buyout, including the notice period, share valuation, terms of payment, and any additional conditions or restrictions that may apply. By implementing the Kings New York Buy-Sell Agreement between two shareholders of a closely held corporation, both parties can have peace of mind knowing that there is a clear framework in place to manage the transfer of shares in a fair and efficient manner.