Document background
The Cross Purchase Buy Sell Agreement serves as a critical business succession planning tool in the Philippine business environment, particularly relevant for closely-held companies, family businesses, and professional partnerships. This agreement becomes essential when business owners want to maintain control over ownership transitions while ensuring business continuity. The document addresses unique aspects of Philippine law, including conjugal property considerations, foreign ownership limitations, and local tax implications. It typically includes detailed provisions for valuation mechanisms, funding arrangements (often through life insurance), trigger events, and payment terms. The agreement helps prevent potential disputes and ensures compliance with Philippine corporate and securities regulations while protecting both the departing owner's interests and the company's stability.
