An agreement that requires selling shareholders to sell their shares to the other shareholders or to the corporation at the price specified in the agreement is referred to as ________.

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A buy-and-sell agreement, also known as a buyout agreement, stipulates that in the event of a triggering event, such as a shareholder's death or desire to sell, the remaining shareholders or the corporation have the right or obligation to purchase the shares at an agreed-upon price. This ensures that the remaining shareholders maintain control of the company and that the departing shareholder and their estate receive fair compensation for their shares. A right of refusal grants a shareholder the first opportunity to purchase shares being sold by another shareholder but does not require them to do so. A voting trust is an agreement among shareholders to transfer their voting rights to a trustee for a specified period. A proxy is a designation of someone else to vote on a shareholder's behalf at a meeting.

An Agreement That Requires Selling Shareholders to Sell Their Shares