If you are worried about your share purchase agreement, we are here to help you. With concrete support and hassle-free documentation, you get your work done in the blink of an eye.
A share purchase agreement can be described as a legal contract between a seller and purchaser where they are termed differently for the sake of purchasing a share.
As the name itself suggests, we think of an agreement where the shares tend to transfer from one party to another. Shares offer ownership to the shareholders which can be achieved through buying a share from a firm or any other existing shareholders of the very firm. In order to make any transfer legally acceptable, it is always advised to opt for a share purchase agreement.
Purchasing shares comprises buying of the business firm’s operating business. In this agreement, no contract with the company alter. When the shareholder wants to sell the shares in any company, then there is a break in the agreement between the shareholder and the target company. The purchaser always insists on keeping the contractual agreements of the company which continues to bind the shareholder even when the purchase is complete.
The primary objective of the share purchase agreement is to ensure that both the lending and the borrowing parties have mutually agreed to the terms and also the number of shares to be transferred at an agreed cost.
It also contains various information pertaining to the business firm along with the rights given to the buyer. Another important aspect of a share purchase agreement is the kind of shares that are transferred from the selling to buying party.
It is very important for the share purchase agreement to be well regulated owing to the discrepancy amongst the shareholders. The agreement is drafted in such a way that it gives respect to the individuality of people involved in it so that due importance is given the opinions on various subjects concerned.
It can never be said that there will not be any disputes or disagreements which may arise when it comes to investing in a company. Therefore, the company should be prepared for all these and the measures taken during such times are conciliation, negotiations, or arbitrations.
Parties involved in the agreement: This typically includes the buyer and the seller, though it is seen sometimes that these parties are shell holding companies only. In such scenarios, it is imperative that the substantive entities involved in the principals are added as guarantors and covenanters for ensuring that the conditions are kept up.
The factual backdrop of the transactions is carefully listed in the recitals so that there is no lack in laying and identifying the terms of relations between the parties.
This clause is usually quite exhaustive as it has authorizations, permits, and various other permissions that are important along with the person who is responsible in obtaining each of these. This clause also provides information regarding the fulfillment of all the warranties, obligations, representations, execution of covenants and agreements.
This mechanism is important for establishing the time frame along with actions under which the closing will take place. Experts always opine that the closing memorandum is included with the list of board resolutions that await passing.
A share purchase agreement between the selling and purchasing parties forms the foundation of the structure of the contract. The agreement is meant for securing the intention of both parties for extending the investment. Any party can make a considerable return with other parties on the basis of two things: rests made on the agreement along with the holistic performance of the business.
Presently we offer a single package for all share purchase agreements.
₹5,000