Sale of Shares Agreement: in part to an existing shareholder

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Sale of Shares Agreement - in part to an existing shareholder

Summary

This Sale of Shares Agreement can be used when a shareholder in a Company sells portion of his/her shares in the Company to another shareholder of the Company.

More information

Why do I need a Sale of Shares Agreement?

A Sale of Shares Agreement sets out the terms of the sale of a shareholder’s shares in a Company to another shareholder.

What type of business should use a Sale of Shares Agreement?

A shareholder wishing to sell portion of the shares that he/she has in the Company to somebody else (being an existing shareholder in the Company) can use this Agreement. 

What does the Sale of Shares Agreement say?
The Agreement consists of:
  • Parties
  • Definitions
  • Sale of shares
  • Purchase price and payment
  • Delivery of documents
  • Warranties and Indemnities
  • Breach
  • Notices
  • General  
What does the Sale of Shares Agreement look like?

The agreement can be printed onto two A4 pages. 

What do you need to do to use the Sale of Shares 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 Company and the purchase price. In particular, ensure that clause 4.2, 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 Shares
  • Sale of Shares Contract


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