Share Purchase Agreement Template South Africa
This is an agreement to sell a majority or minority stake in a private company for cash (not shares). The company could operate in any sector and the seller and buyer could be individuals or other companies. The document presents a wide range of guarantees that protect the value of your investment and provide you with the greatest legal advantage. What distinguishes this document from a share purchase agreement is that a share subscription contract is used in cases where a company sells its shares while, in a share purchase agreement, a shareholder of the company sells shares already issued to another party. 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 contract of sale is considered a «transfer instrument» prescribed by the Companies Act 2008 to legally transfer shares in a company. This Agreement shall apply to the sale of shares in a private company in each sector for cash.
It includes a smaller choice of collateral than other share sale contracts we offer, making it suitable for transactions where the risks to the buyer are lower: for example. B if the buyer is familiar with the business or if the seller is familiar. Our template allows you to take into account almost all aspects of selling shares by providing at the end a single table allowing you to select the parts of the agreement that you want to include or exclude, as well as other customizable aspects. 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, acquisition of employees or contribution of a parent to a family business. This document is suitable for companies in all industries and subscriptions of all sizes. A contract of sale is a contract, normally in writing, that sets out all the conditions governing the sale of shares in a company.
The document requires important information, such as the parties to the transaction, the description of the shares, the purchase price (consideration), the guarantees and assurances of the parties, the requirements before and after completion. A share purchase agreement is a contract for the sale and purchase of a declared number of shares at an agreed price. The shareholder who sells his shares is the seller and the party who buys the shares is the buyer. This agreement describes the conditions of sale and purchase of the shares. Share subscription contract for new shares. It is the protection of the buyer. Creation of majority or minority shareholdings. All sectors. Full version, options for significant guarantees from other shareholders. Retention against poor performance.