Apr 8
2021

Agreement Of Sale Of Shares In A Private Company In South Africa

“all or primarily the asset or entity” when used for a business, i.e., in the case of the company`s assets, more than 50% of its gross assets, regardless of their liabilities; or (b) in the event of a company commitment, more than 50% of the value of its entire business, assessed fairly; Section 15 (2) (c) of the Matrimonial Property Act, 1984, provides that a married spouse in a community of ownership may not alienate, transfer or mortgage shares of the common estate without the written consent of the other spouse. A share purchase agreement is a contract that generally applies in writing and sets out all the conditions governing the sale of shares in a company. Why do I need to buy shares? A written contract to sell shares in a company sets out the terms of the sale of shares of a shareholder to an existing shareholder of the company. A number of issues must be negotiated when selling shares in a business, such as the sale price. B, the transfer process, confidentiality and restrictions. These issues must be included in the share sale agreement to remove uncertainties and ensure that sellers and buyers understand their respective rights and obligations during the sale. It should also be verified whether the seller is a subsidiary of a holding company and, if so, whether the sale by the seller (the subsidiary) constitutes the sale of all or most of the assets or businesses of the holding company in relation to the consolidated accounts of the holding company. If the seller has a properly drafted ME, there is generally a right of pre-emption in favour of the other shareholders included in the MOI or at least an article providing that any shareholder to whom an assignee wishes to transfer shares must be approved by the other shareholders. The 2008 Companies Act provides that the seller cannot agree to the sale of all or part of his assets or businesses unless the TRP has issued a certificate of compliance or exempted the transaction.

This agreement applies to the sale of shares in a private company in each sector for cash. It includes a less extensive choice of guarantees than other share sale agreements we offer, so it is suitable for transactions where the risks to the buyer are lower: z.B. if the buyer is familiar with the business or if the seller becomes familiar. If this is a transfer as intended in the above case, the seller is considered a “regulated business” that makes a “relevant transaction.” If the transaction constitutes the sale of all or part of the aforementioned seller`s assets, it is also necessary to check whether 10% or more of the securities issued by the seller (except by transfer between related or related persons) were transferred within twenty-four months immediately before the date of a particular transaction or offer (the value of the shares transferred). , is irrelevant).