Canada Checklist for Preparing Shareholder Buy-Sell Agreements

Learn how to prepare a Shareholder Buy-Sell Agreement with this checklist for Canadian companies.

What would happen to your business if one of the owners dies or is no longer able to work? A Shareholder Buy-Sell Agreement provides for continuity of the business in those events. Topics included in the Checklist are:

• qualification of shares for capital gains exemption;
• provisions of any existing formal shareholder agreement;
• terms of purchase or redemption (or both) of a deceased shareholder's shares using proceeds of life insurance policies on the life of the deceased;
• whether life insurance policies will be held by the corporation, by the other shareholders or by a trustee.

This Canada Checklist for Preparing Shareholder Buy-Sell Agreements is pursuant to the Income Tax Act (Canada), and is provided in MS Word format so that it can be filled in and printed.