How to Draft Share Purchase Agreement

A draft share purchase agreement is an important document used by companies when buying shares from another company. It outlines the terms of the deal and protects both parties.

Arrow

Introduction

A share is a unit of ownership in the company. The number of shares held by a shareholder represents the shareholder’s stake in the company.  This contract includes both a buyer and a seller.

Arrow

The following are some of the aspects included in the share purchase agreement:

1. Name of the business 2. Name of the buyer 3. Warranties & representations based on the value of the shares 4. The total number of shares sold 5. Indemnification contract 6. Transaction location.

Arrow