The Simple Share Transfer Agreement is a fundamental legal document used in New Zealand business transactions to document and formalize the transfer of company shares between parties. This document is particularly useful for straightforward share transfers in small to medium-sized companies where complex conditions or extensive warranties are not required. The agreement complies with the New Zealand Companies Act 1993 and other relevant legislation, providing a clear framework for executing share transfers while protecting both parties' interests. It typically includes essential elements such as details of the shares being transferred, purchase price, completion mechanics, and basic warranties, while remaining simpler and more concise than comprehensive share purchase agreements used in larger transactions.
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1. Parties: Identifies and provides full details of the transferor (seller) and transferee (buyer) of the shares
2. Background: Sets out the context of the agreement, including details of the company whose shares are being transferred
3. Definitions and Interpretation: Defines key terms used in the agreement and establishes rules for interpretation
4. Agreement to Transfer: Core provision stating the agreement to transfer the shares from seller to buyer
5. Consideration: Specifies the purchase price and payment terms for the shares
6. Completion: Details the completion date, location, and actions required to complete the transfer
7. Seller's Warranties: Basic warranties from the seller regarding ownership and authority to transfer the shares
8. Buyer's Warranties: Basic warranties from the buyer regarding authority and capacity to purchase
9. General Provisions: Standard boilerplate clauses including notices, governing law, and dispute resolution
1. Conditions Precedent: Used when the transfer is subject to specific conditions being met before completion
2. Staged Completion: Required when the transfer will occur in multiple tranches or stages
3. Company Consent: Needed when company constitution or shareholders' agreement requires consent for the transfer
4. Non-Competition: Include when restricting seller from competing post-transfer
5. Tax Indemnity: Used when specific tax risks need to be allocated between parties
6. Confidentiality: Include when specific confidentiality obligations are required beyond general provisions
1. Share Details: Details of the shares being transferred including class, number, and percentage of total issued shares
2. Company Information: Key details about the company including registration number, registered office, and shareholding structure
3. Completion Requirements: Checklist of documents and actions required for completion
4. Form of Transfer: Standard share transfer form required by the company
5. Board Resolution: Pro-forma board resolution approving the share transfer
6. Warranties: Detailed warranties if more extensive than basic warranties in main agreement
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