Bronx New York Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Bronx
• Control #: US-02569BG
• 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. Bronx, New York, is a vibrant and culturally diverse borough located in the northeastern part of New York City. As the third most populous borough, it provides its residents with a rich urban experience, combined with a strong sense of community. Known for its rich history, iconic landmarks, and diverse neighborhoods, Bronx offers a unique blend of opportunities for both residents and visitors. A Shareholders' Agreement between Two Shareholders of a Closely Held Corporation with Buy Sell Provisions is a legally binding contract that outlines the rights, responsibilities, and expectations of shareholders in a closely held corporation. This agreement specifically addresses the buy-sell provisions, which pertain to the circumstances under which a shareholder may sell or transfer their shares, and the procedures for doing so. There are different types of Shareholders' Agreements that can be used between two shareholders of a closely held corporation with buy-sell provisions: 1. Standard Shareholders' Agreement: This is a comprehensive agreement that covers various aspects of shareholder rights, including buy-sell provisions. It establishes the procedures for selling shares, determining the price, and ensuring fair treatment between shareholders. 2. Put Option Agreement: This type of agreement grants a shareholder the right to sell their shares to the other shareholder(s) at a predetermined price or formula within a specified time frame. It can be beneficial when one shareholder wants to exit the business or if there is a disagreement between shareholders. 3. Call Option Agreement: In contrast to the Put Option Agreement, this agreement gives a shareholder the right to purchase the shares of the other shareholder(s) at a predetermined price or formula within a specified time frame. It can be useful when a shareholder wants to increase their ownership or to resolve disputes. 4. Cross-Purchase Agreement: This arrangement involves each shareholder agreeing to purchase the shares of the other shareholder(s) upon certain triggering events, such as death, disability, retirement, or voluntary withdrawal. This helps ensure a smooth transition of ownership in the event of unforeseen circumstances. 5. Stock Redemption Agreement: With this agreement, the corporation agrees to repurchase the shares of a shareholder upon certain triggering events, similar to a Cross-Purchase Agreement. It provides liquidity for the exiting shareholder(s) without requiring the remaining shareholder(s) to purchase the shares. In summary, a Shareholders' Agreement between Two Shareholders of a Closely Held Corporation with Buy Sell Provisions is a vital agreement that outlines the rights and obligations of shareholders in a closely held corporation. By utilizing different types of agreements like Standard, Put Option, Call Option, Cross-Purchase, or Stock Redemption, shareholders can establish a clear framework for the sale and transfer of shares, ensuring a fair and efficient process in Bronx, New York, and beyond.

Bronx, New York, is a vibrant and culturally diverse borough located in the northeastern part of New York City. As the third most populous borough, it provides its residents with a rich urban experience, combined with a strong sense of community. Known for its rich history, iconic landmarks, and diverse neighborhoods, Bronx offers a unique blend of opportunities for both residents and visitors. A Shareholders' Agreement between Two Shareholders of a Closely Held Corporation with Buy Sell Provisions is a legally binding contract that outlines the rights, responsibilities, and expectations of shareholders in a closely held corporation. This agreement specifically addresses the buy-sell provisions, which pertain to the circumstances under which a shareholder may sell or transfer their shares, and the procedures for doing so. There are different types of Shareholders' Agreements that can be used between two shareholders of a closely held corporation with buy-sell provisions: 1. Standard Shareholders' Agreement: This is a comprehensive agreement that covers various aspects of shareholder rights, including buy-sell provisions. It establishes the procedures for selling shares, determining the price, and ensuring fair treatment between shareholders. 2. Put Option Agreement: This type of agreement grants a shareholder the right to sell their shares to the other shareholder(s) at a predetermined price or formula within a specified time frame. It can be beneficial when one shareholder wants to exit the business or if there is a disagreement between shareholders. 3. Call Option Agreement: In contrast to the Put Option Agreement, this agreement gives a shareholder the right to purchase the shares of the other shareholder(s) at a predetermined price or formula within a specified time frame. It can be useful when a shareholder wants to increase their ownership or to resolve disputes. 4. Cross-Purchase Agreement: This arrangement involves each shareholder agreeing to purchase the shares of the other shareholder(s) upon certain triggering events, such as death, disability, retirement, or voluntary withdrawal. This helps ensure a smooth transition of ownership in the event of unforeseen circumstances. 5. Stock Redemption Agreement: With this agreement, the corporation agrees to repurchase the shares of a shareholder upon certain triggering events, similar to a Cross-Purchase Agreement. It provides liquidity for the exiting shareholder(s) without requiring the remaining shareholder(s) to purchase the shares. In summary, a Shareholders' Agreement between Two Shareholders of a Closely Held Corporation with Buy Sell Provisions is a vital agreement that outlines the rights and obligations of shareholders in a closely held corporation. By utilizing different types of agreements like Standard, Put Option, Call Option, Cross-Purchase, or Stock Redemption, shareholders can establish a clear framework for the sale and transfer of shares, ensuring a fair and efficient process in Bronx, New York, and beyond.