Canada Shareholder Buy-Sell Agreement (Hybrid Method)

$29.99

The Canada Shareholder Buy-Sell Agreement (Hybrid Method) is an option that Canadians can consider to put a succession plan in place for the continuity of their small business.

  • This type of buy-sell agreement is known as a 'hybrid' buy-sell.
  • 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.
  • The Agreement is governed by Canadian income tax laws.

The Canada Shareholder Buy-Sell Agreement (Hybrid Method) is available in MS word format and is fully editable.

Download Type: Microsoft Word
SKU: 3005
Last Updated: 14-Apr-2016