What would happen to your business if one of the owners dies or can no longer continue? Ensure continuity of the business' ownership and management with this Canada Shareholder Buy-Sell Agreement (Corporate Redemption Method)
- The corporation obtains life insurance policies on each of the shareholders and uses the proceeds to fund the redemption, acquisition or cancellation of the corporation's shares.
- Upon the death of a shareholder, the corporation redeems the deceased shareholder's shares and makes an election that the deemed dividend is to be paid from the capital dividend account to the extent possible.
- The Agreement contains several different options for methods of valuating the shares.
- The Agreement is governed by Canadian income tax laws.
This Canada Shareholder Buy-Sell Agreement (Corporate Redemption Method)
is available as a downloadable and fully editable MS Word template.