The Independent Counsel

Corporate


Consider a Shareholders' Buy/Sell Agreement


BY TOM L. PETERSON

Entrepreneurs beginning a new business often attend only to such legal matters as incorporation, the assignment of officer positions and the issuance of stock. Nonetheless, the experienced corporate lawyer will advise the founders AT THE OUTSET to sign an agreement covering some or all of the following in the event that a founder leaves the business or dies:

All of these issues, and more, are best dealt with in a written agreement executed by the Company and all of its founders, thus anticipating any potentially divisive problems before they arise.

Comment: Corporate buy-sell planning involves many considerations, including accounting, tax, insurance and estate issues, as well as legal ones. All of these are often best reviewed and dealt with at the outset of the business rather than later on when serious problems may arise.

© ASSOCIATION OF INDEPENDENT GENERAL COUNSEL 1994; (all rights reserved). This article is not intended as legal advice. Consult a qualified attorney for assistance concerning a specific issue or problem.