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In the simplest share purchase agreement (SPA), there are two parties ? the buyer and the seller or sellers if the company is owned by a number of shareholders. However, there may be other parties who have an interest in the shares, such as banks, landlords or other companies within a group.
The share transfer agreement is a legal document which regulates the transfer of shares between shareholders in a company in a particular location or situation. It serves as a legally binding contract that establishes the rights and responsibilities of the parties involved in the share transfer process.
A shares transfer agreement, also known as a stock purchase agreement, is an legal document used to transfer the ownership of shares of stock. The party transferring shares could be a person or a company.
TRANSFER FORM A stock transfer form is a standard document used to transfer existing shares. It contains details of the seller and the buyer, the type and number of shares transferred, and considerations concerning the shares' payment.
As per Section 56,58 of the Companies Act, 2013 read with Rule 11 of Companies (Share Capital & Debenture) Rules, 2014. The transferors and the transferee must inform the Company of transferring the shares. Execute an instrument in form SH-4 along with stamp duty.
After the approval, the written resolution should be attached. Step 3: Prepare the Share Transfer Agreement: The share transfer agreement is required for the transfer of shares in a company. It is used when a shareholder intends to sell or transfer their company shares to another party.