If you don’t have a Shareholders’ or Partnership Agreement, then you should know about the one that is already in place for you.
If you are one of two or more Partners or Shareholders in a privately owned corporation, this will be of the utmost importance to you.
It will come as no big secret when I tell you that the continued success of any business very much depends upon your ability to plan ahead. Yet consider this:
- What plans have you made for when you decide step down?
- Do you have a signed buy sell agreement in place?
- Has it been funded and if so, how?
- Is it current or was it something you did a long time ago?
When asked those questions, we have found that:
- When a buy sell agreement does exist – most have been poorly written and, all too often, things of importance have either been missed or overlooked, or the agreement itself hasn’t even been signed.
- A buy sell agreement is in place – but it hasn’t been looked at or reviewed for many years and consequently no longer reflects your present situation and, perhaps, is no longer properly funded.
- Or worse yet, no agreement exists because everyone’s been far too busy building the business.
If the last instance is your present situation you might like to reflect on the agreement which will exist until can find the time to put a more formal one into place...
