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    Canada Shareholder Buy-Sell Agreement (Promissory Note Method)

    $29.99

    Plan ahead for the continuation of your business upon the death or retirement of an owner with this Shareholder Buy-Sell Agreement (Promissory Note Method) for Canadian companies.

    • The corporation will hold life insurance policies on each of the shareholders and use the proceeds to redeem and acquire its own shares from a deceased shareholder's estate.
    • If a shareholder dies, the surviving shareholders can purchase the deceased's shares on a pro rata basis (proportionate to their current shareholdings) by issuing the corporation a promissory note for the purchase price.
    • The corporation will loan the purchaser the amount of the purchase price from the insurance proceeds, and then makes an election for a deemed dividend to be paid from the capital dividend account if possible.

    If you own a small or family business in Canada, the Shareholder Buy-Sell Agreement (Promissory Note Method) is a succession planning method you can consider.

    Download Type: Microsoft Word
    Last Updated: 14-April-2016
    SKU: 3004