Document background
The Buy-Sell Agreement For LLC (adapted for Australian Proprietary Limited Companies) is a crucial document for businesses with multiple shareholders, providing a predetermined framework for handling ownership transitions. This agreement becomes essential in situations such as shareholder death, disability, retirement, or voluntary exit. It is particularly relevant in the Australian business context where Proprietary Limited Companies are the common business structure for privately held companies. The agreement typically includes provisions for valuation methods, funding mechanisms (often through insurance), payment terms, and transfer procedures, all while ensuring compliance with the Corporations Act 2001 and other relevant Australian legislation. It serves as a risk management tool by preventing unwanted third-party ownership and maintaining business continuity during ownership transitions.
