Nassau New York 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: Nassau
• 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. Nassau New York 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 is a legally binding agreement between shareholders of a corporation based in Nassau, New York. This agreement includes a buy-sell provision that grants the corporation the first option to purchase the shares owned by a deceased shareholder if the beneficiaries of the deceased shareholder intend to sell those shares. This agreement ensures that the other shareholders, or the corporation itself, have the opportunity to maintain control and prevent the shares from being sold to third parties without their consent. It provides a mechanism for the corporation to maintain stability and avoid potential disruptions that could occur if the shares were sold to an unknown party or competitor. The Nassau New York 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 can be further categorized into two types: 1. Voluntary Trigger: This type of agreement is activated when the beneficiaries of the deceased shareholder want to sell their shares willingly. In this case, the corporation has the right of first refusal and the opportunity to purchase the shares before they are sold to an external buyer. 2. Involuntary Trigger: In the event of the death of a shareholder, this type of agreement provides the beneficiaries of the deceased shareholder with an option to sell the shares. However, prior to selling the shares to an external party, the corporation is granted the first right of refusal to purchase the shares. This ensures that the control and ownership of the corporation remain within the existing shareholder group or the corporation itself. The Nassau New York 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 safeguards the interests of both the corporation and the shareholders. It ensures the corporation's stability, prevents unwanted ownership transfers, and provides a fair mechanism for shareholders to sell their shares while still maintaining a controlled environment. This agreement is crucial for the efficient functioning and long-term success of the corporation, as it outlines the procedures and obligations in managing the transfer of shares upon the death of a shareholder.

Nassau New York 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 is a legally binding agreement between shareholders of a corporation based in Nassau, New York. This agreement includes a buy-sell provision that grants the corporation the first option to purchase the shares owned by a deceased shareholder if the beneficiaries of the deceased shareholder intend to sell those shares. This agreement ensures that the other shareholders, or the corporation itself, have the opportunity to maintain control and prevent the shares from being sold to third parties without their consent. It provides a mechanism for the corporation to maintain stability and avoid potential disruptions that could occur if the shares were sold to an unknown party or competitor. The Nassau New York 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 can be further categorized into two types: 1. Voluntary Trigger: This type of agreement is activated when the beneficiaries of the deceased shareholder want to sell their shares willingly. In this case, the corporation has the right of first refusal and the opportunity to purchase the shares before they are sold to an external buyer. 2. Involuntary Trigger: In the event of the death of a shareholder, this type of agreement provides the beneficiaries of the deceased shareholder with an option to sell the shares. However, prior to selling the shares to an external party, the corporation is granted the first right of refusal to purchase the shares. This ensures that the control and ownership of the corporation remain within the existing shareholder group or the corporation itself. The Nassau New York 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 safeguards the interests of both the corporation and the shareholders. It ensures the corporation's stability, prevents unwanted ownership transfers, and provides a fair mechanism for shareholders to sell their shares while still maintaining a controlled environment. This agreement is crucial for the efficient functioning and long-term success of the corporation, as it outlines the procedures and obligations in managing the transfer of shares upon the death of a shareholder.