King Washington 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
• County: King
• 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. The King Washington Shareholders' Agreement with Buy-Sell Agreement is a legally binding contract that outlines the rights and obligations of shareholders in the event of a shareholder's death. This agreement specifically focuses on the corporation's first right of refusal to purchase the shares of a deceased shareholder, should the beneficiaries of the deceased shareholder decide to sell them. This type of agreement is beneficial for maintaining stability within a corporation and ensuring the smooth transfer of ownership. By including a buy-sell agreement, the corporation is given the opportunity to repurchase the shares, thus preventing external individuals or entities from gaining control over the company. There are several variations of the King Washington Shareholders' Agreement with Buy-Sell Agreement. Some different types may include: 1. Standard King Washington Shareholders' Agreement with Buy-Sell Agreement: This is the basic form of the agreement, encompassing the core provisions and clauses that are required for the first right of refusal. 2. King Washington Shareholders' Agreement with Buy-Sell Agreement and Valuation Clause: This type incorporates a valuation clause, which sets out the method for determining the fair market value of the shares to be sold. 3. King Washington Shareholders' Agreement with Buy-Sell Agreement and Funding Mechanism: This variation includes provisions for the funding mechanism required to execute the purchase of the deceased shareholder's shares. 4. King Washington Shareholders' Agreement with Buy-Sell Agreement and Trigger Events: In addition to a deceased shareholder sale, this form of agreement may include trigger events such as disability, retirement, or voluntary departure. The King Washington Shareholders' Agreement with Buy-Sell Agreement offers multiple benefits to both the corporation and the shareholders. It ensures that the corporation has the opportunity to repurchase shares, protects the remaining shareholders' interests, and allows for a smooth transition of ownership. This robust agreement helps shareholders and beneficiaries make informed decisions regarding the sale of shares and helps maintain stability and control within the corporation.

The King Washington Shareholders' Agreement with Buy-Sell Agreement is a legally binding contract that outlines the rights and obligations of shareholders in the event of a shareholder's death. This agreement specifically focuses on the corporation's first right of refusal to purchase the shares of a deceased shareholder, should the beneficiaries of the deceased shareholder decide to sell them. This type of agreement is beneficial for maintaining stability within a corporation and ensuring the smooth transfer of ownership. By including a buy-sell agreement, the corporation is given the opportunity to repurchase the shares, thus preventing external individuals or entities from gaining control over the company. There are several variations of the King Washington Shareholders' Agreement with Buy-Sell Agreement. Some different types may include: 1. Standard King Washington Shareholders' Agreement with Buy-Sell Agreement: This is the basic form of the agreement, encompassing the core provisions and clauses that are required for the first right of refusal. 2. King Washington Shareholders' Agreement with Buy-Sell Agreement and Valuation Clause: This type incorporates a valuation clause, which sets out the method for determining the fair market value of the shares to be sold. 3. King Washington Shareholders' Agreement with Buy-Sell Agreement and Funding Mechanism: This variation includes provisions for the funding mechanism required to execute the purchase of the deceased shareholder's shares. 4. King Washington Shareholders' Agreement with Buy-Sell Agreement and Trigger Events: In addition to a deceased shareholder sale, this form of agreement may include trigger events such as disability, retirement, or voluntary departure. The King Washington Shareholders' Agreement with Buy-Sell Agreement offers multiple benefits to both the corporation and the shareholders. It ensures that the corporation has the opportunity to repurchase shares, protects the remaining shareholders' interests, and allows for a smooth transition of ownership. This robust agreement helps shareholders and beneficiaries make informed decisions regarding the sale of shares and helps maintain stability and control within the corporation.