Document background
The Buy-Sell Agreement (Cross Purchase) is a crucial document for businesses operating under South African law that want to maintain control over ownership transitions and ensure business continuity. This agreement is particularly important for closely-held businesses, partnerships, and private companies where owners have a vested interest in controlling who can become a co-owner. The document specifies how ownership interests can be transferred, typically triggered by events such as death, disability, retirement, or voluntary departure of an owner. It includes detailed provisions for valuation methods, payment terms, and funding mechanisms (often through life insurance policies). The agreement helps prevent potential disputes and ensures compliance with South African legal requirements while providing a clear framework for business succession planning.
