When there are two or more equity holders, a Buy-Sell Agreement is a powerful tool to help control a company’s future. Contractually determining what happens to the company stock after a triggering event (termination of employment, disability, death, third party offers) can avoid shareholder disputes and can also solve some of the owners’ estate planning problems. While no single, sure-fire method of determining the price exists, having a well thought out formula and contractual obligation to regularly update the valuation of the stock price is essential.
Addressing this most basic concern in the Buy-Sell Agreements it prepares for its clients, AMM also attempts to provide a broader frame-work for shareholder relations. Should majority rule always prevail or are there situations that may require a super-majority vote? How should irreconcilable differences be resolved without destruction of the company? All of these issues and more can be addressed by what is often referred to mistakenly as a simple “Buy-Sell Agreement”. Antheil Maslow & MacMinn will help craft a document that fits all of its client’s specific needs.