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Share Transfer Agreement
"I need a Share Transfer Agreement for transferring 10,000 ordinary shares in my private limited technology company to a foreign investor, with completion scheduled for March 15, 2025, including necessary FEMA compliance provisions and RBI approval requirements."
1. Parties: Details of the Transferor(s) and Transferee(s), including full legal names, addresses, and registration details if companies
2. Background: Context of the transfer, including details about the company whose shares are being transferred and the existing shareholding
3. Definitions: Definitions of key terms used throughout the agreement
4. Details of Shares Being Transferred: Specific information about the shares including number, class, distinctive numbers, and percentage of total shareholding
5. Consideration: Details of the purchase price and payment terms
6. Completion: Process and requirements for completing the transfer, including timing and delivery of documents
7. Transferor's Warranties: Warranties regarding ownership, authority to sell, and absence of encumbrances
8. Transferee's Warranties: Warranties regarding authority and capacity to purchase
9. Tax Provisions: Responsibilities for payment of taxes, including capital gains tax and stamp duty
10. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
11. Notices: Process and addresses for serving notices under the agreement
1. Conditions Precedent: Used when the transfer is subject to certain conditions being met first, such as regulatory approvals or third-party consents
2. Board Approval: Required when company's articles mandate board approval for transfers
3. Right of First Refusal Waiver: Needed when existing shareholders have waived their right of first refusal
4. Non-Competition: Important when transferor is required to not compete with the company post-transfer
5. Restrictive Covenants: Used when additional restrictions are placed on either party
6. Earnout Provisions: When part of the consideration is contingent on future performance
7. Foreign Exchange Compliance: Required when transfer involves non-resident parties
8. Tag-Along/Drag-Along Rights: When other shareholders have specific rights triggered by the transfer
1. Schedule 1 - Share Details: Detailed description of shares including certificate numbers, distinctive numbers, and shareholding history
2. Schedule 2 - Company Information: Key details about the company including registration number, registered office, directors, and capital structure
3. Schedule 3 - Warranties: Comprehensive list of warranties given by the Transferor
4. Schedule 4 - Encumbrances: List of any existing encumbrances on the shares
5. Schedule 5 - Corporate Authorizations: Copies of relevant board resolutions and other corporate approvals
6. Schedule 6 - Payment Terms: Detailed payment schedule if payment is to be made in installments
7. Appendix A - Share Transfer Form: Standard form for share transfer as per Companies Act requirements
8. Appendix B - Required Regulatory Forms: Any forms required for regulatory compliance
Authors
Financial Services
Technology
Manufacturing
Healthcare
Real Estate
Retail
Energy
Infrastructure
Professional Services
Consumer Goods
Telecommunications
Education
Media and Entertainment
Agriculture
Mining
Legal
Finance
Compliance
Corporate Secretarial
Tax
Corporate Development
Risk Management
Treasury
Corporate Affairs
Investor Relations
Chief Executive Officer
Chief Financial Officer
Company Secretary
Legal Counsel
Corporate Lawyer
Compliance Officer
Investment Banker
Financial Controller
Managing Director
Board Director
Share Transfer Agent
Tax Advisor
Corporate Finance Manager
M&A Director
Business Development Manager
Risk Manager
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