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 . Upon a shareholder's death, the corporation will collect the insurance proceeds, and use the proceeds to fund the purchase of the deceased shareholder's shares by any of the surviving shareholders who are interested, on a pro rata basis (proportional to their existing shareholdings). Any unpurchased shares will be redeemed by the corporation. The corporation will make an election for a deemed dividend to be paid from the capital dividend account if possible. This type of buy-sell agreement is known as a "hybrid" buy-sell.

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