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Consult a business attorney to help write your stock purchase agreement or review it and make suggestions before you present it to your investor. A stock purchase agreement typically includes the following information: Your business name. The name and mailing address of the entity buying shares in your company's stocks.
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).
A Share purchase agreement means the legal agreement/contract between the shareholders and the company at the time of purchasing the company shares and consists of details like an investment, allotment, lock-in period, terms of investment, etc. Then the indemnification is filed by both buyer and seller of the shares.
The Shareholder's Agreement is generally used to resolve disputes between the corporation and the Shareholder. The Share Purchase Agreement, on the other hand, is a document that justifies the exchange of shares held by the Buyer and Seller.
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 Sale of Shares Agreement (also known as a Share purchase agreement) is a written contract that outlines the terms and conditions of the sale and purchase of shares in a private company when a shareholder sells their shares.
The share purchase agreement is usually drafted by the seller's lawyer, although the buyer may also seek legal advice and make revisions to the agreement.
Either the seller or the buyer can prepare a purchase agreement. Like any contract, it can be a standard document that one party uses in the normal course of business or it can be the end result of back-and-forth negotiations.