What would happen to your business if one of the owners dies or can no longer continue? Ensure continuity of ownership and management with this Shareholder Buy-Sell Agreement for Canada, between the corporation and the shareholders.

Under this Agreement, the corporation holds 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'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 options for valuation of the shares.

This is a Canadian legal document in MS word format, pursuant to the Income Tax Act (Canada).