Shareholder Buy-Sell Agreement (Corporate Redemption Method) | Canada

Would your business survive the death or retirement of one of the owners? Provide for the continued existence of the business 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 made pursuant to the Income Tax Act (Canada).
• This Shareholder Buy-Sell Agreement (Corporate Redemption Method) is available as a downloadable and fully editable MS Word template.