Document background
The Buy Sell Life Insurance Agreement is a crucial document for businesses operating under Belgian jurisdiction seeking to establish a clear succession plan and ensure business continuity. It is particularly relevant for closely-held companies, partnerships, and family businesses where the smooth transition of ownership interests is essential. The agreement combines insurance and corporate law elements to create a funding mechanism for the purchase of business interests upon triggering events such as death, disability, or retirement of a shareholder or partner. Governed by Belgian law and compliant with EU regulations, the document specifies insurance requirements, valuation methods, payment terms, and procedural requirements. It helps prevent potential disputes, protects surviving owners and deceased owners' heirs, and provides liquidity for business interest purchases. The agreement should be regularly reviewed and updated to reflect changes in business value, ownership structure, and relevant legal requirements.
