Document background
The Buy And Sell Agreement Life (Insurance) is a critical document for Belgian businesses seeking to establish a structured succession plan. It is particularly relevant for closely-held businesses where the death, disability, or departure of an owner could significantly impact business operations and ownership structure. The agreement operates within the Belgian legal framework, combining elements of insurance law, corporate law, and succession planning. It details the mechanism by which remaining owners can purchase a departing owner's interest using life insurance proceeds as funding, ensuring business continuity while providing fair compensation to the departing owner or their estate. The document addresses valuation methods, trigger events, insurance policy requirements, premium responsibilities, and tax implications, all while ensuring compliance with Belgian regulatory requirements and market practices.
