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Assignment Of Shares Template for England and Wales

An Assignment of Shares is a legal document governed by English and Welsh law that facilitates the transfer of ownership of shares from one party (the assignor) to another (the assignee). This document outlines the terms and conditions of the share transfer, including consideration, warranties, and completion mechanics. It ensures compliance with the Companies Act 2006 and other relevant legislation, while providing a clear record of the transaction and protecting the interests of all parties involved.

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What is a Assignment Of Shares?

An Assignment of Shares is commonly used when transferring ownership of shares in private companies under English and Welsh law. This document is essential for various scenarios, including corporate restructuring, investment rounds, employee share schemes, or exit strategies. It contains crucial details about the shares being transferred, consideration paid, and any conditions attached to the transfer. The document ensures compliance with the Companies Act 2006 and other relevant regulations, while providing legal certainty and protection for all parties involved in the transaction.

What sections should be included in a Assignment Of Shares?

1. Parties: Details of the assignor and assignee involved in the share transfer

2. Background: Context of the assignment, including details of the company and current shareholding

3. Definitions: Key terms and their meanings used throughout the agreement

4. Assignment: Core terms detailing the transfer of shares from assignor to assignee

5. Consideration: Details of payment or other consideration for the share transfer

6. Completion: Mechanics and timing of the transfer completion, including conditions precedent

What sections are optional to include in a Assignment Of Shares?

1. Warranties: Assurances about the shares and company, typically used in larger transactions

2. Tax Indemnity: Provisions protecting the assignee against historical tax liabilities

3. Non-competition: Restrictions on the assignor's future business activities post-transfer

What schedules should be included in a Assignment Of Shares?

1. Schedule 1 - Share Details: Detailed information about the shares being transferred, including class, number, and nominal value

2. Schedule 2 - Company Information: Key details about the company whose shares are being transferred, including registration number and registered office

3. Schedule 3 - Completion Requirements: List of documents and actions required to complete the transfer

4. Schedule 4 - Warranties: Detailed warranties given by the assignor regarding the shares and company (if applicable)

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use

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