Sale of Members Interest Agreement: in part to an existing member

SALE OF MEMBERS INTEREST AGREEMENT (IN PART, TO AN EXISTING MEMBER)

Summary

This Sale of Members Interest Agreement may be used when a member in a Close Corporation sells portion of his/her members interest to another member of the Close Corporation.

More information

Why do I need a Sale of Members Interest Agreement?

A Sale of Members Interest Agreement strives to set out the terms of the sale of a member’s interest in a Close Corporation to another member.

Who should use a Sale of Members Interest Agreement?

A member wishing to sell portion of his/her members interest that he/she has in a Close Corporation to somebody else (being an existing member in the Close Corporation) may consider using this Agreement.

What does the Sale of Members Interest Agreement say?

The Agreement consists of:

• Parties
• Definitions
• Sale of members interest
• Purchase price and payment
• Delivery of documents
• Warranties and Indemnities
• Breach
• Notices
• General  

What does the Sale of Members Interest Agreement look like?

• The agreement can be printed onto two A4 pages.

What do you need to do to use the Sale of Members Interest Agreement?

• Read the document to ensure that it suits your requirements. Make changes as required.
• Complete the relevant details, such as the Seller and Purchaser’s names, the name of the Close Corporation and the purchase price. In particular, ensure that the clause specifying the manner in which the purchase price is to be paid is completed.
• Ensure both parties sign the agreement and receive a copy.

Also known as:

• Terms of Sale of Members Interest
• Sale of Members Interest Contract

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