A buy-sell agreement, also known as a buyout agreement, is a binding agreement between co-owner of a business that administrates the state of affairs if one of the co-owners dies or when several other unforeseen circumstances take place. A Buy-Sell Agreement should be a great consideration for all corporations with co-owners and shareholders. This agreement can help to minimize problems by having preset provisions in place should any of the following situations occur:
- Termination of a co-owner or shareholder
- Resignation of a co-owner or shareholder
- Death of a co-owner or shareholder
- Divorce of a co-owner or shareholder
- Disability of a co-owner or shareholder
Much like a prenuptial agreement in a marriage, a buy-sell can provide for orderly succession and transfer restrictions and the purchases and sale of shareholders interest in Florida. This agreement also allows for the business to find redemption of deceased shareholders interest with life insurance proceeds.