Shareholder Agreement (also known as Buyout Agreement)

Bahman Eslamboly

Form reviewed by Bahman Eslamboly, Attorney at FindLegalForms

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This Shareholder Agreement (also known as a Buyout Agreement) is between a corporation and its shareholders who desire that all stock remain closely held. This agreement sets out the specific purchase obligations upon the death of a shareholder, including the maximum number the corporation and other shareholders may purchase, and options to purchase upon voluntary and involuntary transfers. This agreement is accompanied by an exhibit that includes a process to determine the purchase price, how this price will be paid and when the transaction will close.

This Shareholder Agreement (Buyout Agreement) includes:
  • Parties: Identifies the corporation and its shareholders;
  • Shares: Sets forth the names of all shareholders and the number of shares owned;
  • Obligations Upon Death: Sets forth the purchase obligations upon the death of a shareholder, number of shares the corporation may purchase and options when shares are purchased according to voluntary transfer;
  • Purchase Price: Sets forth the exact purchase price of the shares in an exhibit to this agreement;
  • Closing: Sets forth the date of closing and that the parties shall deliver all documents necessary to close this transaction;
  • Termination: Specifies the events under which this agreement can be terminated, including bankruptcy or dissolution of the corporation;
  • Signatures: Representatives of the corporation, its secretary and each shareholder must sign this agreement.

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This attorney-prepared packet contains:
  1. General Information
  2. Instructions and Checklist
  3. Shareholder Agreement (Buyout Agreement)
State Law Compliance: This form complies with the laws of all states

Shareholder Agreement (also known as Buyout Agreement)

Product Details

Product Shareholder Agreement (also known as Buyout Agreement)
Country United States
Pages 14
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 #43695
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

A Shareholder Agreement, also known as a Buyout Agreement, is a legal document that outlines the rights and obligations of shareholders in a corporation. It governs the transfer of shares, especially in situations like the death of a shareholder.

Having a Shareholder Agreement is crucial for protecting the interests of shareholders and the corporation. It ensures that shares are not transferred to unwanted parties and provides a clear process for buyouts.

The agreement specifies the purchase obligations that arise upon the death of a shareholder, including how many shares can be purchased and the process for determining the purchase price.

Yes, the Shareholder Agreement includes provisions that outline the events under which it can be terminated, such as bankruptcy or dissolution of the corporation.

The agreement must be signed by representatives of the corporation, its secretary, and each shareholder to be legally binding.

Is This Form Right For You?

Use This Form If:

  • Individuals who are shareholders in a closely held corporation may need this agreement to ensure that their shares are not sold to outside parties upon their death. This protects the interests of remaining shareholders and maintains the integrity of the corporation.
  • Situations requiring the buyout of a deceased shareholder's shares can benefit from this agreement. It provides a clear process for determining the purchase price and the obligations of the corporation and remaining shareholders.
  • For those looking to formalize the transfer of shares in the event of voluntary or involuntary transfers, this agreement outlines the necessary steps and conditions. This ensures that all parties are aware of their rights and responsibilities.
  • Corporations that wish to maintain control over their shareholder structure may use this agreement to prevent unwanted external ownership. It establishes clear guidelines for share transfers, thereby protecting the corporation's interests.
  • In the event of a shareholder's bankruptcy or dissolution of the corporation, this agreement specifies the conditions under which it can be terminated. This provides clarity and legal protection for all parties involved.

Do Not Use If:

  • – This form is not appropriate for publicly traded companies, as the regulations governing share transfers and ownership are significantly different. Public companies must adhere to securities laws that require more complex agreements.
  • – If the corporation is planning to dissolve or liquidate, a Shareholder Agreement may not be necessary. In such cases, the focus would be on the liquidation process rather than share transfers.
  • – Situations where shareholders wish to sell their shares to outside parties without restrictions would not benefit from this agreement. The agreement is designed to maintain a closely held structure, not facilitate external sales.
  • – If there are existing agreements that conflict with the terms of this Shareholder Agreement, it may not be suitable. Conflicting agreements can create legal complications and undermine the effectiveness of this document.
  • – In cases where shareholders are not in agreement on the terms of the buyout, this form may not be effective. A lack of consensus can lead to disputes that this agreement is meant to prevent.

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