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If you are planning to buy or sell shares, a correctly drafted share purchase agreement (SPA) is essential. An SPA is a legal document and it must therefore comply with legislation by providing either party in the transaction with accurate information.
In a sale of shares between two parties, a draft SPA is normally drawn up by the buyer's legal representatives, as it's the buyer who is most concerned that the SPA protects them against post-sale liabilities.
A share purchase agreement (SPA) is an agreement between a buyer and seller(s) of a target company, setting out the terms and conditions relating to the sale and the purchase of a specific number of shares in the target company.
If you are planning to buy or sell shares, a correctly drafted share purchase agreement (SPA) is essential. An SPA is a legal document and it must therefore comply with legislation by providing either party in the transaction with accurate information.
SPAs are required whenever an individual or corporation sells or purchases stocks in another business or corporation. For example, let's say you work at a small corporation with two C-suite executives.
What is a Share Acquisition? A share acquisition involves a buyer acquiring the shares of the target company from the company's shareholders. Normally the buyer will acquire the entire issued share capital of the target company and have complete control of that company.