What distinguishes this document from a share purchase agreement is that a share subscription contract is used in cases where a company sells its shares while, in a share purchase agreement, a shareholder of the company sells shares already issued to another party. A share purchase agreement is a contract for the sale and purchase of all the share capital issued by a company. A share purchase agreement is a contract for the sale and purchase of a declared number of shares at an agreed price. The shareholder who sells his shares is the seller and the party who buys the shares is the buyer. This agreement describes the conditions of sale and purchase of the shares. The document requires important information, such as the parties to the transaction, the description of the shares, the purchase price (consideration), the guarantees and assurances of the parties, the requirements before and after completion. Under a share purchase agreement, the buyer pays the purchase price and the parties execute the share transfer documents after the conclusion. It is important to check the stamp requirements and procedures under the relevant jurisdiction. Once the registration is completed after creation, the buyer`s name is included in the register of company members (if the buyer is not already a member of the company). Once all parties have signed the document, each party must retain at least one signed original copy of the document for registration.
In a share purchase agreement, the seller gives extensive assurances and guarantees on the various aspects of the business for sale.. . .