What is Share Purchase Agreement?
The share purchase agreement is an agreement in which terms and conditions are finalized relating to the purchase and sale of shares of a Company. It is used to transfer the ownership of shares in a company from a seller to a purchaser.
A Share Purchas Agreement (SPA) is signed between two parties where there is an agreement between the seller and the buyer. The seller agrees to sell the mentioned number of shares at a specific price to the buyer. The main goal of the share purchase document is to demonstrate that the terms of the agreement were commonly settled by both the seller and the buyer. Such an agreement specifies the number and the quantity of shares to be sold, the conditions precedent, and the agreements by the two parties. The shares will then be dispensed after this Share Purchase Agreement has been signed.
What Are The Benefits of Signing Share Purchase Agreement?
Due Diligence- A Share Purchas Agreement is a fundamental business process which is carried out when an investor is being included. While numerous new organizations adopt an easygoing strategy to such issues, the absence of such an agreement can have a few unwanted consequences on their business.
Protect Parties- Such an agreement document gives an opportunity to both the parties to protect their interests before the shares are exchanged. A Share Purchase Agreement covers each part of the transaction and is pivotal for the two parties to look at every clause canvassed in the document and understand its significance.
Who shall need a share purchase agreement?
When any individual or corporation is selling or purchasing shares in a company to or from another business entity, a share purchase agreement should be used.
What information to put in a share purchase agreement?
- The purchaser of the shares.
- The seller of the shares.
- The company from which shares being sold.
- The value of shares.
- The law that governs the agreement.
- The type of shares that are being sold.
Procedure for Share Purchase agreement
- A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Share Purchase Agreement by you.
- Once the objectives of the same are clear, the lawyer shall draft a sample Share Purchase Agreement accordingly.
- The draft Share Purchase Agreement shall be sent to you, for your review.
- The whole process takes around 3-4 working days.