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Form #1247Agreement among stockholders of close corporation as to transfer of stock.
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Agreement among stockholders of close corporation as to transfer of stock.
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Agreement among
stockholders of close corporation as to transfer of stock.
Agreement made this _________ day of _________[year],
between _________, _________, _________ and _________, provides that:
The parties have agreed among themselves that, owing
to the nature of the business transacted by _________ Company, called company, it
is not desirable that stock owned and held by the parties should go upon the
market for sale and transfer, for the reason that all the present stockholders
are active workers in the business of company, and are giving their personal
attention and time to the development of its business.
Due to the uncertainty of life and of the possibility
that some one (or more) of the present stockholders, parties to this agreement,
may wish to sell their interest in company and retire, and to guard against the
introduction as stockholders in company of strangers or outsiders in the
business, whether by reason of a wish to sell the stock or by reason of the
death of any one or more of the present stockholders, now this agreement is
made:
The parties owning at present all the stock of
company, agree among and with each other that in case any one or more of them
should desire to sell their stock in company and retire from the business, or
in the event of the death of any one (or more) of the present stockholders,
that those of the present stockholders who remain in the business as
stockholders shall have the option to purchase and acquire the whole of the
stock interest of that party dying or desiring to sell his or her interest at
the book value. The book value shall be ascertained as follows:
If the parties can agree upon a price, then the
parties having the right to purchase may take the interest at the price agreed
upon. But in case the representatives of the party dying or the party desiring
to retire by sale of his or her interest, and remaining parties of this
contract, cannot agree upon a fair price or book value, then each of the
parties shall have the right to appoint one experienced businessperson as
arbitrators, who, if they can agree, shall fix a price. The parties to this
contract remaining in the business shall have the right to purchase the
interest of the party going out at that figure if they so desire; but they
shall have the option to refuse or to take the interest at that price.
In the event that the two arbitrators cannot agree,
then they shall choose a third party as umpire, and the decision of the
majority shall fix a price at which the parties remaining in the business shall
have the right to take or to refuse the interest at the price determined. In
case the parties remaining in the business refuse to purchase after the price
is fixed by the arbitrators, then the interest may be sold by the owner or his
or her representative to the highest and best bidder.
Any stock of a party retiring from the business, or
dying, acquired by the remaining stockholders under this agreement shall be
divided or assigned by the president of the board of directors at that time
acting, subject to the approval of the board, to any one or more of parties to
this agreement, or to some other party not in this agreement on the payment by
that party of the amount of the purchase price, which shall be divided among
parties as shall have supplied the purchase money to pay for the interest
retiring.
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legal council before engaging in any action based upon content contained on this
site.
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or any other commercial use is prohibited. This includes reposting forms from this
site to another site offering free legal or other document forms for download.
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form, and you agree to abide by these terms. It is highly recommended that you have
a licensed attorney review any legal documents for which you are searching in order
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Your use of this site constitutes your acceptance of our terms of use and your agreement
to hold this site, its officers, employees and any contributors to this site harmless
for any damage you might incur from your use of any submissions contained on this
site. If you do not agree to the above terms, please do not proceed.
These forms are provided to assist business owners and others in understanding important
points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
by these documents or on this website. Laws vary in the different states. Agreements
acceptable in one state may not be enforced the same way under the laws of another
state. Also, agreements should relate specifically to the particular facts of each
situation. Therefore, it is important to consult legal counsel whenever utilizing
these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com
is not engaged in recommending or referring members on the site or making claims
about the competence, character or qualifications of its participating members.
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Keywords: close corporation, transfer of stock
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