Chicago Illinois Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder should the Beneficiaries of the Deceased Shareholder Desire to Sell such Shares

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• City: Chicago
• Control #: US-02629BG
• 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 Chicago Illinois Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder is a legally binding contract that outlines the terms and conditions regarding the transfer and sale of shares owned by a deceased shareholder to the corporation itself. This type of agreement ensures that the corporation has the first right to purchase the shares before they are sold to any third party. The purpose of this agreement is to maintain control and stability within the corporation by allowing the remaining shareholders or the corporation itself to retain ownership of the shares and prevent any unwanted or unknown shareholders from becoming part of the corporation. The beneficiaries of the deceased shareholder may have the desire to sell the shares to liquidate the deceased shareholder's estate, but this agreement enforces the corporation's right to purchase those shares, effectively avoiding any potentially adverse consequences. There are different types of Chicago Illinois Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder. Some common variations include: 1. Put-Option Agreement: This agreement gives the corporation the right to obligate the beneficiaries to sell the shares if they choose to sell, thereby putting the shares on offer to the corporation. 2. Call-Option Agreement: This agreement provides the corporation with the option to purchase the shares upon the request of the beneficiaries. 3. Right of First Offer Agreement: This agreement states that before the beneficiaries can sell the shares to any third party, they must make an offer to the corporation, giving the corporation the first opportunity to purchase the shares at the offered price. 4. Right of First Refusal Agreement: This agreement establishes that if the beneficiaries receive an offer from a third party to purchase the shares, they must first offer the shares to the corporation at the same terms and conditions before proceeding with the sale. In summary, a Chicago Illinois Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder is a crucial document for corporations to ensure control and stability while facilitating the transfer of shares in the event of a shareholder's death. It gives the corporation the first option to purchase the shares in order to protect the corporation's interests and maintain the desired ownership structure.

A Chicago Illinois Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder is a legally binding contract that outlines the terms and conditions regarding the transfer and sale of shares owned by a deceased shareholder to the corporation itself. This type of agreement ensures that the corporation has the first right to purchase the shares before they are sold to any third party. The purpose of this agreement is to maintain control and stability within the corporation by allowing the remaining shareholders or the corporation itself to retain ownership of the shares and prevent any unwanted or unknown shareholders from becoming part of the corporation. The beneficiaries of the deceased shareholder may have the desire to sell the shares to liquidate the deceased shareholder's estate, but this agreement enforces the corporation's right to purchase those shares, effectively avoiding any potentially adverse consequences. There are different types of Chicago Illinois Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder. Some common variations include: 1. Put-Option Agreement: This agreement gives the corporation the right to obligate the beneficiaries to sell the shares if they choose to sell, thereby putting the shares on offer to the corporation. 2. Call-Option Agreement: This agreement provides the corporation with the option to purchase the shares upon the request of the beneficiaries. 3. Right of First Offer Agreement: This agreement states that before the beneficiaries can sell the shares to any third party, they must make an offer to the corporation, giving the corporation the first opportunity to purchase the shares at the offered price. 4. Right of First Refusal Agreement: This agreement establishes that if the beneficiaries receive an offer from a third party to purchase the shares, they must first offer the shares to the corporation at the same terms and conditions before proceeding with the sale. In summary, a Chicago Illinois Shareholders' Agreement with Buy-Sell Agreement Allowing Corporation the First Right of Refusal to Purchase the Shares of Deceased Shareholder is a crucial document for corporations to ensure control and stability while facilitating the transfer of shares in the event of a shareholder's death. It gives the corporation the first option to purchase the shares in order to protect the corporation's interests and maintain the desired ownership structure.