Company Sale Agreement Template for Denmark

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Company Sale Agreement

Document background
The Company Sale Agreement is a crucial document used in corporate transactions under Danish law when one party (the seller) wishes to transfer ownership of a company to another party (the buyer). This comprehensive agreement is essential for documenting all aspects of the transaction, including purchase price, payment mechanisms, warranties, and indemnities. It must comply with Danish corporate and commercial laws, particularly the Danish Companies Act (Selskabsloven) and the Danish Contracts Act (Aftaleloven). The agreement typically results from extensive negotiations and due diligence, incorporating necessary protections for all parties while addressing regulatory requirements, employee matters, and tax considerations specific to Danish jurisdiction.
Suggested Sections

1. Parties: Identification of the seller(s) and buyer(s), including full legal names, registration numbers, and registered addresses

2. Background: Context of the transaction, including brief description of the target company and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Sale and Purchase: Core transaction terms including what is being sold (shares/assets), purchase price, and payment terms

5. Conditions Precedent: Conditions that must be satisfied before completion can occur, including regulatory approvals

6. Pre-Completion Obligations: Obligations of parties between signing and completion, including conduct of business requirements

7. Completion: Mechanics of completion, including timing, location, and actions required by each party

8. Warranties: Seller's warranties regarding the company, its business, and assets

9. Limitations on Seller's Liability: Limitations on warranty claims and other seller liabilities

10. Tax Covenants: Specific provisions dealing with tax matters and allocations of tax liabilities

11. Confidentiality and Announcements: Obligations regarding confidentiality and public announcements about the transaction

12. Further Assurance: Obligations to take additional actions necessary to give effect to the agreement

13. Notices: Process and requirements for giving formal notices under the agreement

14. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

Optional Sections

1. Earn-out Provisions: Include when part of purchase price is contingent on future performance

2. Vendor Financing: Include when seller is providing financing for part of purchase price

3. Non-Competition and Non-Solicitation: Include when restricting seller's future business activities

4. Intellectual Property Rights: Include when IP is a significant component of company value

5. Employee Matters: Include when specific arrangements for key employees or general workforce are needed

6. Real Estate Provisions: Include when company owns significant real estate assets

7. Environmental Matters: Include for companies with significant environmental risks or obligations

8. Transitional Services: Include when seller will provide services post-completion

9. Break Fee: Include when parties agree to compensation if deal fails under specific circumstances

10. Data Protection: Include detailed GDPR compliance provisions when significant personal data is involved

Suggested Schedules

1. Company Details: Detailed information about the target company including corporate documents

2. Properties: List and details of all owned and leased properties

3. Intellectual Property: Schedule of all IP rights owned or licensed by the company

4. Material Contracts: List and copies of key commercial contracts

5. Employees: List of employees with key terms of employment

6. Warranties: Detailed warranties given by the seller

7. Disclosed Documents: List of documents disclosed against the warranties

8. Completion Requirements: Detailed list of completion deliverables and requirements

9. Permitted Leakage: List of permitted value extractions in locked box deals

10. Bank Account Details: Account details for payment of purchase price

11. Data Room Index: Index of documents provided in due diligence

12. Encumbrances: Details of any security interests or encumbrances over shares or assets

Authors

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Companies Act (Selskabsloven): The primary legislation governing company operations, corporate structure, and share transfers in Denmark. Critical for determining proper procedures for share transfers and corporate governance requirements.
Danish Contracts Act (Aftaleloven): Provides the legal framework for contract formation and validity, essential for structuring the sale agreement and ensuring its enforceability.
Danish Competition Act (Konkurrenceloven): Relevant for merger control and competition clearance if the transaction meets certain thresholds. May require notification to or approval from competition authorities.
Transfer of Undertakings Act (Virksomhedsoverdragelsesloven): Implements EU Directive 2001/23/EC, protecting employees' rights in business transfers and determining obligations regarding employee retention and information.
Danish Tax Assessment Act (Ligningsloven): Crucial for understanding tax implications of the transaction, including treatment of capital gains and potential tax liabilities.
Danish Bookkeeping Act (Bogføringsloven): Relevant for due diligence processes and understanding the company's financial records and reporting obligations.
Danish Financial Statements Act (Årsregnskabsloven): Important for company valuation and verification of financial statements during due diligence.
Danish Commercial Enterprises Act (Erhvervsvirksomhedsloven): Provides framework for business operations and transfers of commercial enterprises.
Danish Personal Data Act (Databeskyttelsesloven): Implements GDPR requirements, relevant for handling personal data during due diligence and transfer of customer/employee data.
Danish Marketing Practices Act (Markedsføringsloven): Relevant for aspects related to company goodwill, trade names, and marketing assets being transferred.
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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