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Buy Sell Agreement Funding Template for England and Wales

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Key Requirements PROMPT example:

Buy Sell Agreement Funding

"I need a Buy Sell Agreement Funding document for my technology consulting firm with three equal shareholders, where we want to implement life insurance funding to ensure business continuity if any partner dies or becomes permanently disabled, to be effective from March 2025."

Document background
Buy Sell Agreement Funding documents are essential tools for business succession planning and risk management under England and Wales law. These agreements are particularly crucial when business owners want to ensure smooth ownership transitions in various scenarios such as death, disability, retirement, or voluntary exit. The Buy Sell Agreement Funding document combines the traditional elements of a buy-sell agreement with specific provisions detailing how such purchases will be funded, whether through insurance policies, bank financing, or other funding mechanisms. It provides certainty for all parties by establishing clear procedures, timelines, and funding sources for potential future transactions.
Suggested Sections

1. Parties: Identification and details of all parties to the agreement

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Purchase Price and Payment Terms: Details of consideration and payment structure

5. Funding Mechanism: Source and structure of funding arrangements

6. Trigger Events: Circumstances activating the buy-sell provisions

7. Valuation Mechanism: Method for determining share/asset value

Optional Sections

1. Insurance Provisions: Used when life insurance funds the agreement - include when insurance-funded arrangement is chosen

2. Cross-Option Agreements: Mutual options to buy/sell - include in partnership or shareholder arrangements

3. Disability Provisions: Arrangements for incapacity - include when disability insurance is part of the agreement

Suggested Schedules

1. Schedule 1: Share Capital: Details of company shareholding

2. Schedule 2: Valuation Formula: Detailed methodology for business/share valuation

3. Schedule 3: Insurance Policies: Details of associated insurance arrangements

4. Appendix A: Notices: Form of notices and communication requirements

5. Appendix B: Transfer Documents: Pro-forma share transfer forms and documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Companies Act 2006: Primary legislation governing company operations, including share transfers, directors' duties, and company documentation requirements

Law of Property Act 1925: Fundamental legislation dealing with real property aspects that may be involved in the transaction

Financial Services and Markets Act 2000: Regulates financial activities and financial promotions, particularly relevant if the funding involves regulated financial activities

Common Law Contract Principles: Fundamental principles of contract formation under English law, including offer, acceptance, consideration, and intention to create legal relations

Misrepresentation Act 1967: Legislation dealing with false or misleading statements made during contract formation

Finance Acts: Various acts governing taxation aspects of business transactions and funding arrangements

Capital Gains Tax Regulations: Tax provisions relating to the disposal of assets and shares

Stamp Duty and Stamp Duty Reserve Tax Provisions: Tax regulations applicable to share transfers and property transactions

Corporation Tax Act 2010: Legislation governing the taxation of companies and corporate transactions

Insurance Act 2015: Key legislation governing insurance contracts, relevant if insurance funding is involved

Third Parties (Rights Against Insurers) Act 2010: Legislation protecting third party rights in insurance contexts

Money Laundering Regulations 2017: Regulations to prevent the use of the financial system for money laundering or terrorist financing

UK Corporate Governance Code: Set of principles of good corporate governance for listed companies

Small Business, Enterprise and Employment Act 2015: Legislation affecting small businesses and their operations

Partnership Act 1890: Legislation governing partnerships, which may be relevant depending on the business structure involved

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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