If you are a co-owner in a Private company or Partnership, each partner generally has specific skills, expertise or capital. Would your business survive if one of your business partners was totally and permanently disabled or passed away?
Shareholder Buy Sell Agreements deal with this difficult situation if a principle of the business dies or becomes totally and permanently disabled etc (trigger events). In this agreement the Shareholders have agreed to maintain life insurance to provide funds in respect of the Trigger Events.
By the agreement the Shareholders/ Principals can require the other business owners to purchase their interest in the business and the other owners also have the right to require the sale of that interest to them should a trigger event occur