Are you a start-up owner who wants to take your company public or do you have a family business that you want to expand? Whatever the case is, for expanding the business you will most likely need a document that will formalize the business partnership. Use our ready-made and high-quality collection of Shares Agreement Templates in which you will find different kinds of legal documents. These templates are the best for the transfer or exchange of shares ownership. All our shares and stockholder agreement templates are 100% customizable, professionally written, and ready to print. Subscribe and download the business contract of your choice now!
What is a Shares Agreement?
A shares agreement is a legal document that binds a buyer and a seller of company stocks or shares. This kind of agreement will contain information about the type of shares purchased, their amount, the mode of payment, and other relevant details. It is also sometimes called a stock purchase agreement or a stock transfer agreement.
In some cases, purchasing substantial shares in a company may mean that you will have voting rights to the company’s board. In this case, it can also be called a voting agreement.
How to Write a Shares Agreement?
Share agreements and other kinds of corporate agreements are usually drafted by lawyers and a company’s legal team. If you have a start-up and you wish to transfer ownership or create a partnership through equity sharing, you may still create your shares agreement. To this correctly and effectively, we are sharing a few general tips to guide you in the contract-writing process. Study these pieces of advice and ask a lawyer to review the document later on.
1. Learn Stock Market Trading
Purchasing stocks is a form of investing in the stock market. Therefore, whether you are the stock purchaser or seller, you first need to learn the ins and outs of this investment vehicle. This way you are aware of how the market works and you will know all the things expected of you as the buyer or as the seller.
2. Choose a Type of Shares Agreement
After getting acquainted with the stock market, you should then choose the type of shares agreement you need. If, for example, you want to raise funds and sell the stocks of your chain restaurants, you will need to create a restaurant shareholders agreement. This specific type of shares agreement will include legal wording and contract terms that apply to your industry. Choose an agreement type that will match the kind of business transaction you are having.
3. Follow an Agreement Format
And when it comes to writing your actual agreement, it is best to follow a standard agreement format. The internet is rife with shareholders agreement templates that you can use as a reference. A tip: Make sure that you review all its content before filling out those textboxes. Also, check for grammar and spelling errors.
4. Add a Privacy Clause
If you wish to maintain the secrecy of the purchase of a company’s shares, you may always include non-disclosure agreement or confidentiality clauses into the agreement. You may also add other clauses or stipulations that will help protect the interests of the purchaser or the seller. Note that when adding these clauses, local investment and banking laws and policies will still apply.
5. Have The Document Reviewed By an Attorney
The creation of a reliable and loophole-free shares agreement will not be complete without the approval of your lawyer. If you want to save on money, you may draft the basic terms and content of your shares agreement. You will still need a lawyer to approve everything. Investing in a lawyer will help save you from countless legal headaches in the future.
