A contract of sale is considered a “transfer instrument” prescribed by the Companies Act 2008 to legally transfer shares in a company. STT is collected at a rate of 0.25% on the value of the transferred shares. There are various exceptions listed in section 8 of the STT Act. The most notable exceptions would be if the stt amount to be paid is less than R100 (or, in other words, if the value of the transferred shares is less than R40,000) or if the shares are sold within the meaning of the company`s restructuring rules (asset transactions for sharing or intra-group). In this article, we discuss some of the important aspects that should be taken into consideration when drawing up a share sale contract. Summary A share sale agreement can be used when a shareholder sells all of the shares they hold in a business to a buyer whose buyer is already an existing shareholder. A written contract for the sale of shares contains, among other things, a reference to confidentiality and restrictions. The agreement amounts to more than one shareholder who sells his shares, if any. Where the seller has a duly drafted MOI, there is usually a preferential subscription right for the benefit of the other shareholders included in the MOI or, at the very least, an article providing that any shareholder to whom a despised person wishes to transfer shares must be approved by the other shareholders. If the transaction represents the disposal of all or a large part of the seller`s assets as provided above, it is also important to check whether 10% or more of the securities issued by the seller in the twenty-four months preceding the date of a given transaction or offer (the value of the transferred shares does not matter). Another tax, often omitted, is the transfer tax to be paid by the buyer who acquires the shares of a housing business and not by the property itself. This is an agreement to sell a majority or minority stake in a private company for cash (not shares). The company could operate in any sector and the seller and buyer could be individuals or other companies.
The document presents a wide range of guarantees that protect the value of your investment and provide you with the greatest legal advantage. This Agreement shall apply to the sale of shares in a private company in each sector for cash. It includes a smaller choice of collateral than other share sale contracts we offer, making it suitable for transactions where the risks to the buyer are lower: for example. B if the buyer is familiar with the business or if the seller is familiar. Our template allows you to take into account almost all aspects of selling shares by providing at the end a single table allowing you to select the parts of the agreement that you want to include or exclude, as well as other customizable aspects. The Companies Act 2008 provides that the seller may not assign or execute an agreement to divest all or a large part of its assets or businesses unless the TRP has issued a certificate of conformity or exempted the transaction. If any of the exclusions in section 112(1) of the Companies Act 2008 do not apply, the seller`s shareholders must authorize the transaction if the seller sells all or a major part of its assets or businesses. . . .