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A stock transfer agreement, also known as a share transfer agreement or a stock purchase agreement, is a legal contract that governs the sale and purchase of shares in a company. The agreement outlines the specific terms and conditions under which the shares will be transferred from the seller to the buyer.
This can be a complicated procedure and it is prudent to seek legal advice. To qualify as a private share issuer, transfers must be approved by your board or shareholder and you must fulfill all requirements stated in the articles of corporation or shareholders agreement.
The following are the core elements of a share transfer agreement : Definition of transfer of shares. Definition of consideration of shares. Date of transfer. Purchase price. Payment. Liability. Creditors. Representations and warranties.
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