Document background
The Buy-Sell Agreement (Insurance) is a critical document for Canadian businesses seeking to establish a clear framework for ownership transitions. This agreement becomes essential when multiple owners want to ensure business continuity and establish a predetermined mechanism for transferring ownership interests upon specific triggering events. The document integrates life and/or disability insurance policies as funding vehicles for potential buyouts, ensuring that funds are available when needed. It typically includes provisions for valuation methods, transfer procedures, and insurance policy requirements, all structured to comply with Canadian federal and provincial regulations. The agreement is particularly relevant for closely-held businesses, family enterprises, and professional corporations operating in Canada, where maintaining control over ownership transfers and ensuring business continuity are paramount concerns.
