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Business Share Sale Agreement Template for England and Wales

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Key Requirements PROMPT example:

Business Share Sale Agreement

"I need a Business Share Sale Agreement for the sale of 75% of shares in my technology consulting company to a private equity firm, with an earn-out mechanism based on 2025 performance targets and specific warranties relating to our intellectual property portfolio."

Document background
The Business Share Sale Agreement is the primary transaction document used when selling shares in a private company under English and Welsh law. It is essential for both share acquisitions and corporate restructuring, providing a comprehensive framework for transferring ownership while protecting the interests of all parties. The agreement typically includes detailed provisions about the sale price, payment terms, warranties about the business, tax matters, and post-completion obligations. It's particularly important as it governs not just the transfer of shares but also addresses the underlying business risks and liabilities.
Suggested Sections

1. Parties: Details of seller(s) and buyer(s)

2. Background: Context of the transaction and company details

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including price and shares being sold

5. Consideration: Payment terms and mechanics

6. Completion: Timing and mechanics of completion

7. Warranties: Standard seller warranties about the business

8. Limitations on Claims: Restrictions on warranty claims

9. Confidentiality: Confidentiality obligations

10. Governing Law: Jurisdiction and dispute resolution

Optional Sections

1. Earn-out Provisions: Used when part of consideration is contingent on future performance

2. Non-compete Provisions: Used when seller restrictions are required post-completion

3. Tax Covenant: Used for complex tax arrangements or indemnities

4. Employee Provisions: Used when specific employee arrangements are needed

Suggested Schedules

1. Details of the Company: Company information including share capital

2. Warranties: Detailed warranties about the business

3. Properties: Details of company properties

4. Intellectual Property: List of IP rights

5. Material Contracts: Key business contracts

6. Completion Obligations: Actions required at completion

7. Tax Covenant: Detailed tax indemnities and provisions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company operations, including share capital provisions, transfer requirements, directors' duties, company registration, and statutory pre-emption rights

Financial Services and Markets Act 2000: Regulates financial services activities and financial promotions in share transactions

Financial Services Act 2012: Covers financial regulation provisions and market conduct requirements for share transactions

Income Tax Act 2007: Tax legislation relevant for personal tax implications of share sales

Corporation Tax Act 2010: Governs corporate tax implications of share sales and related transactions

Taxation of Chargeable Gains Act 1992: Covers capital gains implications, tax warranties and indemnities in share sales

Transfer of Undertakings (Protection of Employment) Regulations 2006: Protects employees' rights during business transfers, including share sales that affect employment

Employment Rights Act 1996: Ensures protection of employment rights during business ownership changes through share sales

Competition Act 1998: Regulates competition aspects and merger control provisions in share sales

Enterprise Act 2002: Provides framework for competition clearances and merger control in significant share sales

UK GDPR: Regulates the processing and transfer of personal data in business transactions

Data Protection Act 2018: UK's implementation of data protection requirements, affecting data transfers in share sales

Proceeds of Crime Act 2002: Anti-money laundering legislation relevant for share sale transactions

Money Laundering Regulations 2017: Specific regulations governing anti-money laundering requirements in business transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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