Share Sale Agreement South Africa

A contract of sale is a contract, normally in writing, that sets out all the conditions governing the sale of shares in a company. For the purposes of this Notice, we assume that the proposed transaction will take place between two parties acting at a comparable level, and the subject matter of the agreement concerns the shares of a private company. Why do you need to sell shares in your business? Maybe you have an investor who wants to get on board, have one or two new shareholders or just get the devil out of the company. Whatever the reason, Legal Legends has you covered! Why do I need a sales contract? A written contract for the sale of shares in a company sets out the conditions for the sale of a shareholder`s shares to an existing shareholder of the company. A number of issues must be negotiated during the sale of a company`s equity, such as. B the purchase price, transfer process, confidentiality and restrictions. These issues should be included in the share sale agreement to remove uncertainties and ensure that sellers and buyers understand their respective rights and obligations during the sale. These share sale contracts apply to the purchase or sale of the entire ownership of a limited liability company. They are suitable, whether you are the buyer or the seller, because they can be easily adapted to favor both parties. In particular, we offer a menu of 140 guarantees that should protect and reassure every buyer.

A share sale agreement can be used when a shareholder sells all the shares he holds in a company to a buyer whose buyer is already an existing shareholder of the company. This is a simple subscription agreement for new shares, under which the buyer does not need extensive guarantees on the state of the company. He or she is probably already very familiar with the company, trusts existing shareholders, or buys himself or herself at a price that significantly reduces risk. It is therefore an ideal document for situations such as: additional participation in the capital of an existing shareholder, employee buyouts or contribution of a relative to a family business. . . .

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