A legal document that lays down the conditions of purchase of shares by a buyer is called a share purchase agreement. It is an agreement made between the seller and buyer of shares. The purpose of the agreement is to ensure that clarity is brought to the terms and condition of the sale/transfer of the share which is subject to mutual consent of the parties.

eStartIndia is an online legal service platform where a team of expert legal professionals from India, offering a variety of legal services relating to all kinds of agreements, legal notices, negotiable instruments, company registrations, intellectual property, tax services, personal and property services.

eStartIndia will help you to draft a share purchase agreement from the comfort of your home, offering you services that are very specialized and tailored for each individual.

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WHY CHOOSE eStartIndia?

This organization comprises of expert legal professionals, who use their expertise will draft your share purchase agreement that shall cover all the legal requirements and needs of the parties. The experience and the knowledge that our professionals hold can help you in including clauses in the agreement that shall effectively bring clarity to the terms and conditions of sale which will avoid the scope of disputes in future.

ADVANTAGES OF SHARE PURCHASE AGREEMENT

1. IMPROVES CLARITY: The agreement involves a detailed description of the procedure and conditions of the sale which will avoid disputes in the future.
2. GUARDS THE PARTIES: The parties express their will, rights, and duties in an agreement which reduces the scope of disputes between the parties in the future.
3. PROOF: It acts as evidence that expresses the duties and rights which the parties have agreed on.
4. SCOPE OF CONFIDENTIALITY: Agreement involves clauses that state the compliance with any confidentiality that the parties may prescribe in their contract.
5. INTELLECTUAL PROPERTY RIGHTS: The ownership rights and usage rights of trademark or trade name (if any) after the sale of shares will be really mentioned in the agreement.

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Click here to read more about the “Shareholder Agreement”.

CONTENTS

• Name and details of parties.
• Date of the agreement.
• Purpose of the agreement.
• Definitions of terms to bring clarity.
• Authority to sell.
• Number and type of shares transferred.
• Allocation of shares.
• Valuation.
• Price of shares.
• Time, mode and location of delivery of shares.
• List of rights connected to the share which is transferred (including rights and liabilities during insolvency of the company).
• List of related agreements.
• Government approvals.
• Penalties and remedy for non-compliance.
• Other rights and duties of parties.
• Intellectual property rights (if any).
• Warranties and guarantees.
• Tax claims and tax demand related to shares sold.
• Insurance provisions.
• Dispute resolution.
• Other terms and conditions.
• Signatures of parties.