Document background
The Buy Sell Agreement Between Business Partners serves as a critical business planning tool in Hong Kong's dynamic commercial environment. It is essential for companies seeking to establish clear protocols for ownership transitions and business continuity. This document becomes particularly relevant when founding partners establish a business, when new partners join, or during succession planning phases. The agreement, structured under Hong Kong law, typically includes comprehensive provisions for various scenarios such as partner retirement, death, disability, or voluntary exit. It addresses crucial elements including valuation methodologies, payment terms, funding mechanisms, and transfer restrictions, while ensuring compliance with Hong Kong's legal framework, particularly the Companies Ordinance and Partnership Ordinance. The document provides security and clarity for all stakeholders by establishing predetermined procedures for handling ownership changes.
