Share Sell Agreement in Dubai
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Share Sell Agreement
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Features of
Share sell/purchase agreement
The purpose of this agreement is to protect the interests of both parties involved. It also makes sure that there will be no breach of trust between them. The
following are some features of share sell agreement:
- Legal protection for both sides
- Mutual understanding between the two parties involved in this deal
- Non-disclosure agreement to protect the interest of both sides
- Confidentiality clause that ensures confidentiality between both sides
what needed to create share sell /purchase agreements:
There are many different kinds of share purchase agreements, and they are used for a variety of different purposes. The information needed to create your share purchase agreement depends on what you need it for. If you’re buying shares in a company, for example, you’ll need to know the number of shares that are being sold and who owns them. Other types of share purchase agreements will require more specific information.
- When you’re ready to buy shares in a business, it’s important to have all of the information you need at your fingertips. Here are some of the things you’ll want to consider when creating your share purchase agreement:
- The company’s name and address
- The number of shares you’re buying and how much each one costs
- The amount of money being paid and when it will be due
- When the shares will be transferred over to you (e.g., once all payments have been made), and what happens if there are any delays or defaults on this point
- How long before the sale takes place (e.g., 90 days from now)
Share Sale Agreement Terms:
The terms of a share sale agreement should include:
- Parties to a sale and purchase are the buyer, seller, and their respective agents.
- You can specify the number and type (in particular, long or short) of shares.
- Purchase/sale price and adjustments are included.
- Pre-sale conditions (or pre-sales) include all the conditions that must be satisfied before the sale is made.
- Completion: the steps required to finalize the sale.
- Warranty and indemnity agreements are used to allocate risk between parties.
- Limitations on liability, or seller protections, are rules that limit the buyer’s ability to make a claim against the seller.
- Post-completion obligations may include non-compete agreements and other restraints. Disputes can be resolved through arbitration or litigation.
common clauses in a Share Sell Agreement
Parties:
Shareholders should be named in the share sale agreement. if you are selling your company’s entire share capital, then all shareholders need to be parties to the agreement. A shell company (i.e. one that has few or no assets) may require a guarantor. The guarantor enters into the share sale agreement and guarantees the company’s obligations. This helps minimize risk in case something goes at a later date and you wish to make a claim. An example of this is if a company is selling all of its business.
Shares:
A share sale agreement delineates the number and type of shares being sold by each shareholder. Investors will want to be aware of the type of shares they are purchasing, as different share types may have different rights. For example, some may allow voting rights, some may provide for dividend distributions, and others might contain a stipulation for capital appreciation.
Price:
The share sale agreement should include a provision on how the purchase price will be calculated and how it will be paid. There are two ways to pay for shares. One is to pay cash on the day the sale completes and the other is by installments over time.
Warranties & Indemnities
The warranties and indemnities are probably the most important parts of the contract, aside from price and payment terms. These clauses give the buyer certainty about what they are buying.
Documents required for a share sell agreement:
- Transfer form of share —After the transfer of shares is complete, the seller must sign a share transfer form detailing the number of shares being transferred and the amount paid by the buyer.
- The company requires that the seller surrender his or her existing share certificate and receive a new one reflecting the revised percentage of ownership.
- A seller must submit a letter of resignation to the company prior to or on completion of a sale.
- Once a share sale has been effected, companies must notify ASIC within 2S days by filing Fonn 484. The form is available on the ASIC website
We are highly experienced commercial lawyers who are focused on striking the right balance between protecting your interests and minimizing risks and liabilities. We will ensure you gain ownership of the property or investment as quickly as possible while keeping costs to a minimum. Please contact us. We would be happy to discuss your legal needs, whether you are an investor or a business owner.
