US Law Videos .com  


US Law Videos .com
Helping you understand American law through
video, books, links, forms, and more ...

Home Search Legal Forms Law Books
(195 videos)

Canada Shareholder Buy-Sell Agreement (Promissory Note Method)

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 (Promissory Note Method).
  • Under this Agreement, the corporation holds life insurance policies on each of the shareholders and uses the proceeds to redeem and acquire its own shares from a deceased shareholder's estate.
  • Upon the death of a shareholder, the surviving shareholders can purchase the deceased's shares on a pro rata basis (proportionate to their current shareholdings) by issuing the corporation a promissory note for the purchase price.
  • The corporation will loan the purchaser the amount of the purchase price from the insurance proceeds, and then makes an election for a deemed dividend to be paid from the capital dividend account if possible.
  • This Agreement is governed by Canadian income tax laws.
This Canada Shareholder Buy-Sell Agreement (Promissory Note Method) is available as a fully editable MS Word template.

Download: Canada Shareholder Buy-Sell Agreement (Promissory Note Method)

Related Forms:

Related Categories:

NOTICE: The information and links contained on this web page are intended only to be merely informative and are NOT intended to provide legal advice to any person/entity. Never rely solely on the information contained on this web site or on any third-party web site. Information and/or links may not apply or be appropriate to your situation and/or may be out of date. Any person with a specific legal question or legal problem should always consult with and seek the advice of a qualified lawyer. E.&O.E. Legal disclaimer


Canadian Law Resources: (14-Apr-2018) E.&O.E.

More videos ...