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 a ________.

Question

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A buy-and-sell agreement is a contract between co-owners of a business that lays out what happens if one owner wants to sell their shares or is forced to sell due to certain events (such as death or disability). The agreement typically includes a provision that requires the selling shareholder to sell their shares at a predetermined price to either the other shareholders or the corporation. This helps ensure orderly ownership transitions and can prevent unwanted outsiders from gaining ownership in the company.

An Agreement That Requires Selling Shareholders to Sell Their Shares