Document background
The Buy Sell Agreement (Insurance) is a crucial document for business continuity planning in South Africa, designed to facilitate smooth ownership transitions in various scenarios. It combines elements of both corporate and insurance law, structured under South African jurisdiction, particularly the Insurance Act 18 of 2017 and the Financial Advisory and Intermediary Services Act. This agreement is typically used when business owners want to ensure their interests can be purchased by remaining owners or the business entity upon specific triggering events, with life or disability insurance policies providing the necessary funding. The document includes comprehensive details about insurance policy requirements, premium payments, valuation methods, and transfer procedures, while ensuring compliance with South African regulatory requirements. It's particularly relevant for closely-held businesses where maintaining control over ownership is crucial, and where immediate access to funds for purchasing business interests is necessary.
