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Buy Sell Agreements

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1.What is Buy-Sell Agreement?

Buy-Sell Agreement is an agreement between shareholders in a corporation to operate effectively in the event of a shareholder’s disability, death, retirement or fallout from disagreement. The agreement ensures smooth business transaction, resolving banking dividends and adhering to corporate policies despite interruptions or dispute.

2.Who should consider Buy-Sell Agreement?

Buy-Sell Agreement works well for business associates, private corporations and shareholders to ensure smooth business operations in the case of dispute or disruptions. An experienced tax and legal advisor should be consulted while drafting out the agreements.

3.Benefits of Buy-Sell Agreement

Buy-Sell Agreement comes with numerous objectives, some of which are:

  • Allowing business groups and companies to steer clear of financial strain
  • Ensuring sale or appropriate funding for continuity of the business
  • Reassuring customers, employees, suppliers and creditors during dispute

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