Share Sale Agreement (Long Form)A Share Purchase Agreement is a document that outlines the terms of sale shares owned by a company’s shareholder, to another party.
This document applies in cases where the shares have already been issued, and are already owned by a person or company; this document is not appropriate in cases where new shares will be issued to a buyer. This document supports sales by up to two existing shareholders, although more may be manually added as necessary. This document also requires shareholders who aren’t parties to the sale to sign the agreement as providers of warranties that address the company’s operations and financial health.
Please note that this document references a "Disclosure Letter". We highly advise that you seek professional advice from a lawyer and/or accountant in assembling your letter. These letters must address each of the warranties mentioned in this Agreement and supporting documentation must be provided.
This document also requires that a guarantor be part of the agreement to ensure that the selling parties perform their obligations under this agreement, including but not limited to transferring the shares to the buyer, and compensating the buyer in case of certain issues with the company’s health within a certain period following the sale.
Use this Share Purchase Agreement if:
You are buying shares held by individuals in a company OR are an individual selling your shares in a company to a third party.
You want the sale to have certain terms and warranties that address the company’s health, and what should happen if the business deteriorates within a period after the purchase of shares.
You want the agreement to be secured by the participation of a guarantor.
The Share Purchase Agreement covers:
The terms of the sale, and the circumstances in which the shareholders selling shares will be liable to compensate the buyer for shortfalls in the business’s performance.
A comprehensive list of warranties provided by the sale shareholders, as well as continuing shareholders in regards to the company’s operation and health.
For more information:
- What happens to shares when a company is sold?
- Who can I sell my company shares to?
- Share Sale Contract: A Guide to Buying and Selling Company Shares