Cross Option Agreement

An appropriate agreement is required between the shareholder and the company for the disposal of shares on death or critical illness of the shareholder.

Separate cross option agreements may be required for each shareholder.

It is suggested that the company’s’ legal advisers draw up a cross option agreement. The agreement works by creating a ‘sell’ option for the shareholder in the event of death and/or critical illness and a ‘buy’ option for the company in the event of death only.

Rebroke are able to assist in this regard and provide draft cross option agreement wording.