Assumption Agreement To Be Bound By Shareholders Agreement

Bahman Eslamboly

Form reviewed by Bahman Eslamboly, Attorney at FindLegalForms

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This Assumption Agreement sets forth that any shareholder who assumes the shares of another agrees to be bound by an existing shareholders agreement. This agreement sets out the name of the corporation, all shareholders bound by the agreement and date of the existing shareholders agreement. It also specifically sets out that the transferee has received a copy of the shareholders agreement and agrees to abide by the covenants therein. A written Assumption Agreement to be Bound by Shareholders Agreement will prove invaluable in the event of disagreements, misunderstandings or litigation surrounding the transfer of the shares.

This Assumption Agreement to be Bound by Shareholders Agreement contains:
  • Corporation: Name of the corporation who issued the shares;
  • Agreement Information: Sets out all shareholders bound by the Shareholders Agreement and the date of that agreement;
  • Transfer: Name of shareholder who is transferring the shares, number of shares and the name of the person to whom shares are transferred;
  • Covenants: Sets forth the covenants which the new shareholder agrees, including the fact that the shares are purchased for its own account and not for another;
  • Signatures: New shareholder must sign this agreement in the presence of a witness.

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This attorney-prepared packet contains:
  1. General Instructions
  2. Assumption Agreement to be Bound by Shareholders Agreement
State Law Compliance: This form complies with the laws of all states

Assumption Agreement To Be Bound By Shareholders Agreement

Product Details

Product Assumption Agreement To Be Bound By Shareholders Agreement
Country United States
Pages 4
Dimensions Designed for Letter Size (8.5" x 11")
Printer compatibility Designed to print on all ink-jet and laser printers
Editable Yes (.doc, .wpd and .rtf)
Format Microsoft Word
Adobe PDF
WordPerfect
Rich Text Format
Platform Windows Compatible
Mac Compatible
Linux Compatible
Availability In Stock. Instant Download
Usage Unlimited number of prints
Category Shareholder Agreements
Product number #28500
Download time Less than 1 minute (approx.)
Document Access Via secret online address
Email with download links
Email with attachment upon request
Refund Policy 60 days, no-questions asked, 100% money back guarantee

Frequently Asked Questions

An Assumption Agreement to be Bound by Shareholders Agreement is a legal document that binds a new shareholder to the terms of an existing shareholders agreement, ensuring they are aware of and agree to the same obligations as the original shareholders.

Having this agreement in writing provides clear evidence of the new shareholder's acceptance of the existing terms, which can be crucial in the event of disputes or misunderstandings regarding shareholder rights and responsibilities.

The new shareholder must sign the agreement in the presence of a witness to ensure its validity and enforceability. This signature confirms their acceptance of the terms laid out in the existing shareholders agreement.

Yes, this Assumption Agreement is designed to comply with the laws of all states, making it suitable for various types of corporations, provided they have an existing shareholders agreement.

If the new shareholder does not agree to the existing shareholders agreement, they should not proceed with the share transfer. This agreement is essential for ensuring that all parties are on the same page regarding their rights and obligations.

Is This Form Right For You?

Use This Form If:

  • Individuals who are acquiring shares from an existing shareholder may need this Assumption Agreement to ensure they are legally bound by the existing shareholders agreement. This protects the rights of all parties involved and clarifies the obligations of the new shareholder.
  • Situations requiring a formal acknowledgment of existing agreements arise when a shareholder decides to transfer their shares to another party. This document ensures that the new shareholder understands and agrees to the terms set forth in the original shareholders agreement.
  • For those involved in corporate restructuring, this form is essential to maintain continuity in shareholder obligations and rights. It provides a clear record that the new shareholder is aware of and agrees to abide by the existing terms, minimizing potential disputes.
  • Companies undergoing changes in ownership may find this Assumption Agreement invaluable. It serves as a safeguard against misunderstandings regarding the rights and responsibilities of new shareholders, ensuring compliance with the original agreement.
  • In cases where litigation may arise from share transfers, having a written Assumption Agreement can be crucial. It serves as evidence that the new shareholder has received and acknowledged the existing shareholders agreement, thereby reducing the risk of legal disputes.

Do Not Use If:

  • – This form is not appropriate if the shares being transferred are not subject to an existing shareholders agreement. In such cases, a different type of agreement may be necessary to outline the terms of the transfer.
  • – If the transfer of shares involves multiple parties and complex arrangements, a more comprehensive agreement may be required rather than a simple Assumption Agreement. Legal counsel should be sought in such situations.
  • – In instances where the new shareholder is unwilling to accept the terms of the existing shareholders agreement, this form should not be used. It is essential that all parties agree to the terms for the agreement to be valid.
  • – This form is not suitable for informal or verbal agreements regarding share transfers. A written document is crucial to ensure clarity and legal enforceability.
  • – If the corporation is undergoing bankruptcy or liquidation, this Assumption Agreement may not be applicable, as the transfer of shares could be subject to different legal considerations.

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