Oakland Michigan 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: Oakland
• 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. Oakland Michigan Shareholders' Agreement with Buy-Sell Agreement is a legal document that outlines the rights and obligations of shareholders in a corporation based in Oakland, Michigan. It includes a unique provision called the First Right of Refusal to Purchase the Shares of Deceased Shareholder, which grants the corporation the opportunity to purchase the shares of a deceased shareholder before they can be sold to any other party. This provision is particularly useful when the beneficiaries of the deceased shareholder express an interest in selling the shares. There are different types of Oakland Michigan Shareholders' Agreement with Buy-Sell Agreement that incorporate the First Right of Refusal to Purchase the Shares of Deceased Shareholder. These types may include: 1. Voluntary Buy-Sell Agreement: This type of agreement is established with the consent of all shareholders involved in the corporation. It ensures that the corporation has the first option to purchase the shares if a shareholder passes away. 2. Mandatory Buy-Sell Agreement: In this type of agreement, all shareholders are legally obligated to include the First Right of Refusal to Purchase the Shares of Deceased Shareholder. It provides a predetermined mechanism for the corporation to buy back the shares upon the death of a shareholder. 3. Cross-Purchase Buy-Sell Agreement: This type of agreement involves the remaining shareholders of the corporation purchasing the shares of a deceased shareholder. The First Right of Refusal to Purchase the Shares of Deceased Shareholder allows the corporation as a whole to take part in the purchase, ensuring equitable distribution among remaining stakeholders. 4. Entity Purchase Buy-Sell Agreement: In contrast to the cross-purchase agreement, this type of agreement allows the corporation itself to buy back the shares of a deceased shareholder. The corporation then redistributes the shares among the remaining shareholders or retains them as treasury stock. 5. Hybrid Buy-Sell Agreement: This agreement combines elements of both the cross-purchase and entity purchase options, allowing flexibility based on the specific circumstances of the sale of shares. It is important for shareholders, especially in closely held corporations, to have a well-defined Shareholders' Agreement with a Buy-Sell provision. By including the First Right of Refusal to Purchase the Shares of Deceased Shareholder, the agreement ensures that the corporation maintains control over ownership changes and protects the interests of both the corporation and the parties involved.

Oakland Michigan Shareholders' Agreement with Buy-Sell Agreement is a legal document that outlines the rights and obligations of shareholders in a corporation based in Oakland, Michigan. It includes a unique provision called the First Right of Refusal to Purchase the Shares of Deceased Shareholder, which grants the corporation the opportunity to purchase the shares of a deceased shareholder before they can be sold to any other party. This provision is particularly useful when the beneficiaries of the deceased shareholder express an interest in selling the shares. There are different types of Oakland Michigan Shareholders' Agreement with Buy-Sell Agreement that incorporate the First Right of Refusal to Purchase the Shares of Deceased Shareholder. These types may include: 1. Voluntary Buy-Sell Agreement: This type of agreement is established with the consent of all shareholders involved in the corporation. It ensures that the corporation has the first option to purchase the shares if a shareholder passes away. 2. Mandatory Buy-Sell Agreement: In this type of agreement, all shareholders are legally obligated to include the First Right of Refusal to Purchase the Shares of Deceased Shareholder. It provides a predetermined mechanism for the corporation to buy back the shares upon the death of a shareholder. 3. Cross-Purchase Buy-Sell Agreement: This type of agreement involves the remaining shareholders of the corporation purchasing the shares of a deceased shareholder. The First Right of Refusal to Purchase the Shares of Deceased Shareholder allows the corporation as a whole to take part in the purchase, ensuring equitable distribution among remaining stakeholders. 4. Entity Purchase Buy-Sell Agreement: In contrast to the cross-purchase agreement, this type of agreement allows the corporation itself to buy back the shares of a deceased shareholder. The corporation then redistributes the shares among the remaining shareholders or retains them as treasury stock. 5. Hybrid Buy-Sell Agreement: This agreement combines elements of both the cross-purchase and entity purchase options, allowing flexibility based on the specific circumstances of the sale of shares. It is important for shareholders, especially in closely held corporations, to have a well-defined Shareholders' Agreement with a Buy-Sell provision. By including the First Right of Refusal to Purchase the Shares of Deceased Shareholder, the agreement ensures that the corporation maintains control over ownership changes and protects the interests of both the corporation and the parties involved.