How it works
If you own or manage a corporation and a shareholder leaves, becomes disabled, or dies, a Redemption Agreement can protect you. This agreement allows you to spell out in advance the terms for purchasing or transferring ownership shares. A Redemption Agreement can spell out your promise to buy back the shareholder's interest.
You often don't think about the real worst case scenarios in business. But a Redemption Agreement can keep your business running smoothly. It's always smart to be prepared. In certain events, a corporation often agrees to buy back the interest of a partner or shareholder. With a Redemption Agreement, you can agree on the price and conditions ahead of time. You don't want to be haggling over the buyout terms if someone becomes disabled or dies. If you're a shareholder, you don't want your family to have to deal with a messy business arrangement on your behalf. Planning ahead benefits everyone-the corporation, the shareholder and their loved ones. Iron out the details before you need them. We'll walk you through the steps to create a Redemption Agreement and get everyone on the same page.
Other names for this document: Stock Redemption Agreement
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