You are going to need Share Sale Agreements, if you are buying or selling shares in a company. The seller, the purchaser and the company of the shares that are being transferred are the three parties of share sale agreements.
Benefits of Share Sale Agreement:
- Sale price is clear
- Time and date for payment is clear
- You have no ongoing or continuing liability to the company, after your shares are sold.
Share Sale Process
The seller will provide the purchaser a signed transfer form, at the time of the sale of the shares, declaring that ownership of the shares has shifted to the purchaser. The company will invalidate seller’s share certificate and issue new share certificates to the purchaser and the company will also inform ASIC of the share transfer.
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Commercial Lawyers Perth, is a firm with experienced and professional lawyers who can assist you with any kind of contracts or agreements. Our lawyers have immense experience in advising and counseling clients with respect to share sale agreement. If you need any legal advice on share sale agreement, contact us and we will fix up a meeting where we may consider your particular circumstances.
Some terms that you should incorporate in Share Sale Agreements:
- Parties to the agreement
- Number and types of shares
- Purchase price
- Payment schedule and procedure
- Transferring of ownership to the purchaser
- Warranties from both parties – purchaser and seller
- Confidentiality clause
- Restraint of trade clause
- An insurance and release whereby once the sale has been finalized, neither party will have any financial commitments to the other.
Share Sale Agreements can get complex if it is portion of a large transaction, for example selling out a big position (25% or more) in a private company where the company runs a large business. If you need any advice or more information on Share Sale Agreements, feel free to contact us – Commercial Lawyers Perth.