In general, there are two types of shares that a company distributes to its shareholders: preferred shares and common shares. The nature of the stock determines the buyer`s voting rights, dividend yields and the company`s share of ownership. As a share buyer, you use this agreement to ensure that the seller makes some contractual commitments to the company that will bind them even after the sale. Note: For an existing shareholder`s subscription, see the simple version of this document. The existing shareholder will need fewer guarantees, as he is already linked to the company. Share sale agreements are applied when a company`s shares are sold and not the company`s activities or assets. The document offers strong protection to the buyer through a series of 115 guarantees, and by the possibility of “recovering” part of the seller`s purchase price in case the company does not produce expected profits. It includes an option in the event that one or more of the selling shareholders are agents (as agents, it cannot give guarantees). A company`s shareholders use a share purchase agreement, also known as a share transfer form, to transfer ownership of shares to a new person. If the execution is correct, this document becomes a legally binding agreement.
The buyer then receives the rights and obligations related to the partner`s estate and the seller withdraws from the business. If you want to formalize the sale of shares in an agreement If the subscriber also lends money to the company, then you should match it with a loan agreement. The consideration is the purchase price that the buyer must pay for the shares of the target company. When closing a share sale, it is important that the actual value of the target company is reflected in the agreement. It is customary for parties to receive an evaluation of the target entity through financial statement accounts and references to annual and management accounts. This adjusts the purchase price if the value of the target company changes. The sub-file contains a selection of templates to cover certain circumstances, including share sales with or without transfer of debtors and creditors, with or without transfer of ownership and with or without collateral. A comparison matrix is available to help you decide which share purchase contract is best suited to your goal.