Assignment Of Shares Agreement Template for Germany

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Key Requirements PROMPT example:

Assignment Of Shares Agreement

"I need an Assignment of Shares Agreement under German law for transferring 100% of shares in my tech startup GmbH to a large international corporation, with specific provisions for intellectual property protection and staged payment terms to be completed by March 2025."

Document background
The Assignment Of Shares Agreement is a crucial document in German corporate transactions, used when transferring ownership of shares in both private and public companies. This document is essential for implementing corporate restructurings, acquisitions, or internal reorganizations under German law. It must comply with strict formal requirements, including mandatory notarization for GmbH share transfers under § 15 GmbHG. The agreement typically includes detailed provisions on the transfer terms, purchase price, representations and warranties, and any conditions precedent. It's particularly important to note that German law imposes specific requirements for share transfers, including potential pre-emption rights of other shareholders and regulatory approvals, all of which must be carefully addressed in the agreement.
Suggested Sections

1. Parties: Identification of the Assignor (transferring shareholder) and Assignee (receiving party), including full legal names and addresses

2. Background: Context of the transfer, including details about the company whose shares are being transferred and the existing shareholding structure

3. Definitions: Definitions of key terms used throughout the agreement

4. Subject Matter of Assignment: Detailed description of the shares being transferred, including number, nominal value, and percentage of total share capital

5. Purchase Price and Payment: The agreed consideration for the share transfer and payment terms

6. Effective Date: Specification of when the transfer becomes effective, considering notarization requirements

7. Warranties of the Assignor: Basic warranties regarding ownership, title to shares, and authority to transfer

8. Cooperation and Further Acts: Obligations to cooperate in completing necessary registrations and filings

9. Notifications: Requirements for notifications to the company and relevant authorities

10. Costs: Allocation of costs, including notarization fees

11. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

12. Execution: Formal execution requirements including notarization provisions

Optional Sections

1. Conditions Precedent: Required when the transfer is subject to specific conditions such as regulatory approvals or third-party consents

2. Purchase Price Adjustment: Used when the final purchase price may be adjusted based on certain factors or future events

3. Non-Competition Clause: Include when the assignor needs to be restricted from competing post-transfer

4. Existing Shareholder Rights: Required when there are existing shareholders' agreements or pre-emption rights to address

5. Tax Provisions: Detailed tax arrangements when specific tax structures or allocations need to be agreed

6. Employee Matters: Relevant when the share transfer impacts existing employee arrangements or management

7. Confidentiality: Additional confidentiality provisions when standard provisions are insufficient

8. Break Fee: Include when parties want to specify compensation if the transfer fails to complete

Suggested Schedules

1. Share Details: Detailed description of the shares including share certificates numbers and shareholding history

2. Company Information: Key details about the company including registration number, registered office, and current directors

3. Existing Encumbrances: List of any existing pledges, liens or other encumbrances on the shares

4. Required Consents: List of all required third-party and regulatory consents

5. Corporate Authorization: Copies of corporate authorizations for the transfer

6. Shareholders' Resolution: Any required shareholders' resolutions approving the transfer

7. Payment Details: Bank account and payment instruction details

8. Form of Transfer Notices: Template notices required for the company and authorities

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Manufacturing

Technology

Real Estate

Healthcare

Retail

Energy

Professional Services

Transportation

Construction

Media and Entertainment

Telecommunications

Industrial

Consumer Goods

Agriculture

Relevant Teams

Legal

Corporate Governance

Finance

Compliance

Corporate Development

Mergers & Acquisitions

Business Development

Board Secretariat

Risk Management

Corporate Finance

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Company Secretary

Compliance Officer

Corporate Development Manager

Investment Director

Mergers & Acquisitions Manager

Managing Director

Board Member

Financial Controller

Head of Legal

General Counsel

Business Development Director

Corporate Finance Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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