Document background
The Shareholder Buy Sell Agreement serves as a crucial governance document for private companies in the Netherlands, establishing a clear framework for managing ownership transitions. This agreement is particularly important for closely-held companies where maintaining control over ownership is essential. It addresses various scenarios including voluntary sales, retirement, death, disability, or termination of employment, providing mechanisms for share valuation and transfer procedures. The document ensures compliance with Dutch corporate law requirements, including relevant provisions of the Burgerlijk Wetboek and EU regulations. It's typically implemented at company formation or when significant ownership changes occur, and helps prevent potential disputes by establishing clear procedures in advance. The agreement also includes provisions for funding arrangements, such as insurance policies, to ensure financial capability for share purchases when trigger events occur.
