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

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Kings
• 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. Keywords: Kings New York Shareholders' Agreement, two shareholders, closely held corporation, buy sell provisions The Kings New York Shareholders' Agreement is a legal document that outlines the rights, responsibilities, and obligations of two shareholders of a closely held corporation in the state of New York. This agreement is designed to protect the interests of both shareholders and provide a framework for resolving any disputes that may arise between them. One of the key provisions included in the Kings New York Shareholders' Agreement is the buy sell provision. This provision offers a mechanism for the shareholders to buy or sell their shares in the corporation under certain conditions. It aims to provide a fair and orderly process in the event that one shareholder wishes to sell their shares, or if circumstances change and one shareholder wishes to buy out the other. There can be different types of Kings New York Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions. Some common variations include: 1. Right of First Refusal: This provision grants the non-selling shareholder the first opportunity to purchase the shares being sold. If the non-selling shareholder declines, then the selling shareholder can proceed with selling to a third party. 2. Mandatory Buyout: This provision stipulates that in specific circumstances, such as death, disability, retirement, or termination of employment, one shareholder must buy out the other shareholder's shares at a predetermined price. This ensures continuity and stability for the corporation in times of unexpected events. 3. Shotgun Clause: This provision allows one shareholder to make an offer to buy the other shareholder's shares at a specified price. The other shareholder then has the choice to accept the offer or counter-offer with a higher price. This mechanism forces a resolution and prevents a stalemate situation. 4. Valuation Methods: The agreement may specify the method or formula to determine the fair market value of the shares being bought or sold. Common methods include an independent appraisal, book value, or a multiple of earnings. Overall, the Kings New York Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions is a vital tool for ensuring a fair and efficient process for buying or selling shares in a closely held corporation. It helps provide clarity and protection for the shareholders involved, promoting transparency and stability within the corporation.

Keywords: Kings New York Shareholders' Agreement, two shareholders, closely held corporation, buy sell provisions The Kings New York Shareholders' Agreement is a legal document that outlines the rights, responsibilities, and obligations of two shareholders of a closely held corporation in the state of New York. This agreement is designed to protect the interests of both shareholders and provide a framework for resolving any disputes that may arise between them. One of the key provisions included in the Kings New York Shareholders' Agreement is the buy sell provision. This provision offers a mechanism for the shareholders to buy or sell their shares in the corporation under certain conditions. It aims to provide a fair and orderly process in the event that one shareholder wishes to sell their shares, or if circumstances change and one shareholder wishes to buy out the other. There can be different types of Kings New York Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions. Some common variations include: 1. Right of First Refusal: This provision grants the non-selling shareholder the first opportunity to purchase the shares being sold. If the non-selling shareholder declines, then the selling shareholder can proceed with selling to a third party. 2. Mandatory Buyout: This provision stipulates that in specific circumstances, such as death, disability, retirement, or termination of employment, one shareholder must buy out the other shareholder's shares at a predetermined price. This ensures continuity and stability for the corporation in times of unexpected events. 3. Shotgun Clause: This provision allows one shareholder to make an offer to buy the other shareholder's shares at a specified price. The other shareholder then has the choice to accept the offer or counter-offer with a higher price. This mechanism forces a resolution and prevents a stalemate situation. 4. Valuation Methods: The agreement may specify the method or formula to determine the fair market value of the shares being bought or sold. Common methods include an independent appraisal, book value, or a multiple of earnings. Overall, the Kings New York Shareholders' Agreement between Two Shareholders of Closely Held Corporation with Buy Sell Provisions is a vital tool for ensuring a fair and efficient process for buying or selling shares in a closely held corporation. It helps provide clarity and protection for the shareholders involved, promoting transparency and stability within the corporation.