Document background
The Shares Sale And Purchase Agreement is a fundamental transaction document used in South African corporate acquisitions when one party wishes to acquire ownership of a company through the purchase of its shares from existing shareholders. This document is essential for both private and public company transactions, though its specific terms may vary depending on the size and nature of the transaction. It must comply with South African legislation, particularly the Companies Act 71 of 2008, and typically includes detailed provisions on purchase price mechanics, warranties about the company's condition, indemnities, conditions precedent, and completion procedures. The agreement is particularly important in the South African context due to specific regulatory requirements regarding company ownership, B-BBEE considerations, and exchange control regulations where foreign purchasers are involved.
