Products tagged with 'succession planning form'

Would your business survive the death or retirement of one of the owners? Provide for the continued existence of the business with this Canada Shareholder Buy-Sell Agreement (Corporate Redemption Method).

• The corporation obtains 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 shareholder'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 different options for methods of valuating the shares.
• The Agreement is made pursuant to the Income Tax Act (Canada).
• This Shareholder Buy-Sell Agreement (Corporate Redemption Method) is available as a downloadable and fully editable MS Word template.

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.
• This is a fully editable legal form in MS Word format which can be customized to fit your circumstances.
• Governed by Canadian tax laws and ntended to be used only in Canada.

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.
• This legal contract form is available in MS word format and is fully editable.

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 is a fully editable legal form in MS Word format which can be customized to fit your circumstances.
• Governed by Canadian tax laws and ntended to be used only in Canada.

Plan for the future of your small business - learn what you need to know about Business Succession Planning in Canada with this 8-page expert guide.

The guide describes the different types of business structures under Canadian laws, the pros and cons of each type of corporate entity. In addition, it discusses:

• how to extract value from your business,
• corporate investing,
• exit strategies,
• family businesses,
• tax planning and estate freezes.

Business Succession Planning in Canada is intended for Canadian businesses and is provided in PDF format.

Ensure the continuity of ownership and management of your business with this Shareholder Buy-Sell Agreement for Ontario.

• The Agreement includes:
  • a procedure for soliciting offers from third parties;
  • the remaining shareholders have right of first refusal to purchase shares of a departing shareholder;
  • the remaining shareholders have the right to piggyback the sale of their shares onto a proposed sale of more than 50% of the shares;
  • a mandatory (shotgun) buy-sell;
  • a mandatory buyout on death, to be funded by proceeds of a life insurance policy on the life of the deceased shareholder.
• This template is available in MS word format and is easy to customize to fit your circumstances.
• Intended to be used only in the Province of Ontario, Canada.