What is an Share Purchase Agreement or agreement to transfer shares?

It is an agreement that facilitates the transfer of shares from the seller to the buyer. It

can be executed either by sale or gift. It consists of two parties who have mutually

agreed on the terms and conditions of the share transfer. It also contains the requisite details of both the parties to the agreement. The agreement can be altered

as per the terms and conditions laid down by both parties.

There are two types of agreement to transfer shares:

  1. Share sale agreement
  2. Share purchase agreement

A Share purchase agreement is a contract wherein an investor (who is looking to buy the shares of a company) and the company are the two parties. It outlines the details of the shares like the type of shares being purchased, the total number of shares and the price of the particular shares being bought. After the agreement, the investor is vested with voting rights within the company and also other managerial rights of the company.

The two parties in a share sale agreement are the shareholder of the company who will be selling off his shares and the buyer who will be deemed the new shareholder of the company. The change in ownership of the shares will not in any way affect the business of the company as it will remain under the domain of the company itself, this is because the company is regarded as a separate legal person under the eyes of the law.

Together a share sale and purchase agreement outline the circumstances and conditions under which the shares can be sold by a shareholder and purchased by an investor.

Our proficient team of lawyers at best legal services are seasoned and accomplished at drafting Share Purchase Agreements and other documents related to it. For more information on the same, please visit www.bestlegalservices.in