Buy Sell Agreements

Buy/Sell Agreements or Put and Call Option agreements (as they are also referred) are agreements used in the context of business succession to allow for an equity holder’s (Equity Participant’s) estate to be paid out in the event of the their death or disablement.  They are commonly used in conjunction with an appropriate policy of insurance (Insurance Policy) to provide certainty for a business on the death or disablement of an Equity Participant.  It is not usual for Security Holders Agreements to deal with the death of disablement of an Equity Participant as their scope is usually limited to the operation and control of the Enterprise.

Buy/Sell Agreements can be used in a wide variety of entity types where a few Equity Participants hold the majority of the equity in the business (Enterprise).  A Buy/Sell Agreement is applicable where the equity held in a variety of business structures including (but by no means limited to) traditional partnerships, a unit trusts, a proprietary company or other hybrid form of entity.

[Read more…]

Dundas Lawyers
Street Address Suite 12, Level 9, 320 Adelaide Street Brisbane QLD 4001

Tel: 07 3221 0013

Send this to a friend