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

If this is a transfer as intended in the above case, the seller is considered a “regulated business” that makes a “relevant transaction.” A share sale agreement can be used when a shareholder sells to a buyer all the shares he owns in a company, if the purchaser is already an existing shareholder of the company. By transferring an unlisted guarantee, the company that issued the unlisted guarantee is responsible for the STT. However, the company can recover the company to be paid by the person to whom the guarantee is transferred. “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; 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. For any reason, do you have to sell shares in your company? Maybe you have an investor who wants to get on board, have one or two new partners or just get the hook out of the business. Whatever the reason, Legal Legends has you covered! 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). 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. A share purchase agreement is considered a “transfer instrument” required by the Companies Act 2008 for the legal transfer of shares of a company.

StT is levied at 0.25% on the value of the transferred shares.