Fulton Georgia Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Fulton
• 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. A Fulton Georgia Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions is a legally binding document that outlines the rights, responsibilities, and obligations of shareholders within a closely held corporation in Fulton, Georgia. This agreement serves as a means to protect the interests of both shareholders and the corporation, while also establishing a clear framework for decision-making and dispute resolution. The Buy Sell Provisions within this agreement provide mechanisms for the orderly transfer of shares in certain predefined events, such as death, disability, retirement, or voluntary sale. These provisions ensure that the remaining shareholder(s) have the opportunity to purchase the shares of the departing shareholder(s) at a predefined price or through a specified process. This helps maintain stability and continuity within the corporation and prevents undesired ownership changes. Different types of Fulton Georgia Shareholders' Agreements between Two Shareholders of Closely Held Corporation with Buy Sell Provisions may include: 1. Cross-Purchase Agreement: In this type of agreement, each shareholder agrees to purchase the shares of the other shareholder in the event of a triggering event. This is often used when there are only two shareholders in the closely held corporation. 2. Stock Redemption Agreement: In this agreement, the corporation itself agrees to redeem the shares of the departing shareholder(s) upon a triggering event. The remaining shareholder(s) will be entitled to use the corporation's funds to finance the share purchase. 3. Wait-and-See Agreement: This agreement allows the remaining shareholder(s) to decide whether they want to purchase the departing shareholder's shares or allow the corporation to redeem them. This choice is usually exercised within a certain timeframe after the triggering event occurs. 4. Hybrid Agreement: This type of agreement combines elements of both cross-purchase and stock redemption agreements based on the preferences and specific needs of the shareholders and corporation involved. In summary, a Fulton Georgia Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions is a legally binding document that outlines the rights and obligations of shareholders within a closely held corporation. The agreement includes provisions for the orderly transfer of shares in predefined events, and different types of agreements exist depending on the preferred method of share transfer. These agreements provide stability, protect shareholder interests, and ensure the smooth operation of the closely held corporation in Fulton, Georgia.

A Fulton Georgia Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions is a legally binding document that outlines the rights, responsibilities, and obligations of shareholders within a closely held corporation in Fulton, Georgia. This agreement serves as a means to protect the interests of both shareholders and the corporation, while also establishing a clear framework for decision-making and dispute resolution. The Buy Sell Provisions within this agreement provide mechanisms for the orderly transfer of shares in certain predefined events, such as death, disability, retirement, or voluntary sale. These provisions ensure that the remaining shareholder(s) have the opportunity to purchase the shares of the departing shareholder(s) at a predefined price or through a specified process. This helps maintain stability and continuity within the corporation and prevents undesired ownership changes. Different types of Fulton Georgia Shareholders' Agreements between Two Shareholders of Closely Held Corporation with Buy Sell Provisions may include: 1. Cross-Purchase Agreement: In this type of agreement, each shareholder agrees to purchase the shares of the other shareholder in the event of a triggering event. This is often used when there are only two shareholders in the closely held corporation. 2. Stock Redemption Agreement: In this agreement, the corporation itself agrees to redeem the shares of the departing shareholder(s) upon a triggering event. The remaining shareholder(s) will be entitled to use the corporation's funds to finance the share purchase. 3. Wait-and-See Agreement: This agreement allows the remaining shareholder(s) to decide whether they want to purchase the departing shareholder's shares or allow the corporation to redeem them. This choice is usually exercised within a certain timeframe after the triggering event occurs. 4. Hybrid Agreement: This type of agreement combines elements of both cross-purchase and stock redemption agreements based on the preferences and specific needs of the shareholders and corporation involved. In summary, a Fulton Georgia Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions is a legally binding document that outlines the rights and obligations of shareholders within a closely held corporation. The agreement includes provisions for the orderly transfer of shares in predefined events, and different types of agreements exist depending on the preferred method of share transfer. These agreements provide stability, protect shareholder interests, and ensure the smooth operation of the closely held corporation in Fulton, Georgia.