Company Law
Bindu
(Querist) 29 July 2010
This query is : Resolved
Please can anyone forward me draft of share purchase agreement, holding and subsidiary Agreement and its effect on shareholders
Thank you
s.subramanian
(Expert) 30 October 2010
You can approach a share broker in your local town and get it.
R.Ramachandran
(Expert) 30 October 2010
Dear Mr. Subramaniam, Bindu is not asking about the contract for purchase and sale of shares, which as rightly pointed out by you a copy can be obtained from the share broker.
But what Bindu is asking is an Agreement to be entered into by two parties - one permitting the shares of the company to be purchased and the other agreeing to purchase the shares. It is direct investment in the Company mostly of private limited companies and not Joint Stock Companies.
Dear Bindu, the share purchase agreement is like any other agreement. But the terms and conditions would clearly deal as to how many shares are agreed to be sold / purchased; what will be the share ratio between different parties after such a sale; if future shares are issued whether the ratio will remain same or will undergo change and if so to what extent etc. etc.
What effect it will have on share holders will depend upon the terms and conditions and also the working of the company.
