What does Share Purchase Agreement mean?
The terms and conditions regarding the sale and purchase of the shares of a company are defined under the share purchase agreement. The ownership of a share gets transferred from seller to purchaser.
A Share Purchase Agreement (SPA) is negotiated by two parties where a seller-buyer agreement occurs. The seller agrees to sell the number of shares listed to the buyer at a given price. The primary objective of the share purchase document is to display that the terms of the agreement are mutually agreed by both the vendor and the purchaser. Such an agreement lays out the amount and quantities of shares to be sold, the corresponding terms, and the two parties ' arrangements. Upon signing this Share Purchase Agreement, the shares will be delivered.
What are the advantages of Share Purchase Agreement?
Due Diligence- Such Agreement is a key business process that takes place when an investor is included. Although numerous new companies are accepting these problems with a simple approach, the lack of such an agreement may have some undesirable effects on their company.
Protect Parties- Such agreement offers the opportunity to both the parties to protect their rights before the sale of shares takes place. A Share Purchase Agreement protects every aspect of the agreement and is necessary for both sides to review and appreciate each provision included in the contract.
Who all are required to enter into a share purchase agreement?
A share purchase agreement is required to be executed when any person or organization sells or buys company’s shares to or from another business entity.
What information to put in a share purchase agreement?
- The one who is purchasing the shares.
- The one who is selling the shares.
- Details of the company from which shares being sold.
- Shares value.
- The law that governs the agreement.
- The type of shares that are being sold.
What are the steps of Share Purchase agreement?
- A qualified professional from our department will get in touch with you and will explain you the entire process and the objective of Vendor Agreement.
- Sample vendor agreement shall be drafted by the lawyer after setting the objectives of the same.
- You will be sent the draft Seller Agreement for review.
- It generally takes around 3-4 working days.