Hawaii Acquisition Agreement between GO Online Networks Corp and Westlake Capital Corp regarding purchase and sale of company shares
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FAQ
What Does Closing Date Mean? The closing date refers to the date when a company purchase and sale transaction is signed off and completed. This date may be different than the effective date, which is the date when the transaction is deemed to have occurred.
The effective date is the date on which a statute, contract, or other such legally binding instrument takes effect or becomes operative and enforceable. This date may or may not be the same date as the signing date or the date on which the agreement was executed.
What does the effective date mean in a contract? An effective date is a specific date when an agreement or transaction between one or more parties becomes legally binding and the terms outlined in the contract begin to apply.
The buyer's lawyers will generally prepare the first draft of the share purchase agreement (SPA). However, in addition to precedents which assume that the drafter is acting for the buyer, we also provide precedents for drafters acting for the seller (either preparing a first draft or marking up the buyer's draft).
The following are listed in a share purchase agreement: Name of the company. Par value of shares. Name of purchaser. Warranties and representations made by seller and purchaser. Employee benefits and bonuses. Number of shares being sold. Details of the transaction. Indemnification agreement for unforeseen costs.
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.
The closing date refers to the date when a company purchase and sale transaction is signed off and completed. This date may be different than the effective date, which is the date when the transaction is deemed to have occurred. Most of the time, the closing and effective date of a transaction is the same day.
Share transfer on the closing date Legally, the transfer is simple. It takes place on the day you visit the public notary and transfer the shares to the buyer. This is referred to as the closing date. This date should not be confused with the signing date, the date on which the purchase agreement is signed.