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Shareholder Buyout Agreement
"I need a Shareholder Buyout Agreement for our Irish tech startup where two founding shareholders are selling their combined 30% stake to the company by March 2025, with payment structured in three installments."
1. Parties: Identification of the selling shareholder(s), purchasing shareholder(s) or company, and the company whose shares are being sold
2. Background: Context of the buyout, including current shareholding structure and reason for the buyout
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Sale and Purchase of Shares: Core transaction terms including number of shares, class of shares, and purchase price
5. Purchase Price and Payment Terms: Detailed breakdown of consideration, payment method, and timing
6. Completion: Requirements and mechanics for completing the transaction, including timing and location
7. Seller's Warranties: Warranties regarding share ownership, authority to sell, and company-related warranties
8. Buyer's Warranties: Warranties regarding authority to purchase and ability to pay
9. Pre-Completion Obligations: Obligations of all parties between signing and completion
10. Confidentiality: Provisions regarding confidential information and announcements
11. Tax Matters: Tax-related provisions, indemnities, and obligations
12. Governing Law and Jurisdiction: Specification of Irish law as governing law and jurisdiction for disputes
1. Earn-out Provisions: Used when part of the purchase price is contingent on future performance
2. Non-Compete Obligations: Required when selling shareholders need to be restricted from competing post-completion
3. Continuing Employment: Needed when selling shareholder is also an employee/director who will remain with the company
4. Dividend Rights: Required when addressing pre-completion dividend entitlements
5. Bank Consent: Necessary when company has existing banking facilities requiring consent for ownership changes
6. Tag-Along/Drag-Along Rights: Required when other shareholders retain rights affecting the transaction
7. Share Valuation Mechanism: Used when purchase price needs to be determined through a specific valuation process
8. Dispute Resolution: Alternative dispute resolution mechanisms if preferred over court proceedings
1. Details of the Shares: Detailed description of shares being transferred including share certificates numbers and share class rights
2. Company Information: Key company details including corporate information, subsidiaries, and material contracts
3. Completion Requirements: Checklist of documents and actions required for completion
4. Warranties: Detailed warranties given by the seller regarding the company and shares
5. Form of Share Transfer Form: Pro-forma share transfer documentation required under Irish law
6. Board Resolution: Pro-forma board resolutions approving the share transfer
7. Deed of Resignation: Pro-forma resignation letters for any selling shareholders leaving board positions
8. Tax Covenant: Detailed tax indemnity provisions and procedures
Authors
Board
Business Day
Companies Act
Company
Completion
Completion Date
Confidential Information
Consideration
Deed of Adherence
Disclosed
Disclosure Letter
Encumbrance
Group
Irish GAAP
Long Stop Date
Material Adverse Change
Parties
Purchase Price
Purchaser
Related Persons
Relevant Period
Sale Shares
Seller
Share Capital
Shareholders Agreement
Signing Date
Subsidiary
Tax
Tax Authority
Tax Covenant
Transaction Documents
Warranties
Working Hours
Articles of Association
Board Resolution
Business
Constitution
Directors
Intellectual Property Rights
Losses
Management Accounts
Material Contracts
Ordinary Shares
Revenue Commissioners
Share Certificate
Statutory Books
Working Capital
Sale and Purchase
Purchase Price
Payment Terms
Conditions Precedent
Pre-Completion Obligations
Completion
Post-Completion Obligations
Warranties
Indemnities
Tax Covenants
Confidentiality
Non-Competition
Non-Solicitation
Share Transfer Restrictions
Board Representation
Continuing Employment
Restrictive Covenants
Announcements
Further Assurance
Assignment
Notices
Costs
Entire Agreement
Variation
Waiver
Severability
Third Party Rights
Counterparts
Governing Law
Jurisdiction
Dispute Resolution
Force Majeure
Termination
Shareholder Rights
Tag-Along Rights
Drag-Along Rights
Valuation
Due Diligence
Information Rights
Exit Provisions
Professional Services
Manufacturing
Technology
Retail
Family Business
Healthcare
Real Estate
Financial Services
Construction
Hospitality
Agriculture
Transportation
Media and Entertainment
Legal
Finance
Corporate Governance
Board of Directors
Executive Management
Tax
Compliance
Corporate Affairs
Treasury
Risk Management
Chief Executive Officer
Managing Director
Company Secretary
Chief Financial Officer
Corporate Lawyer
Legal Counsel
Finance Director
Board Director
Shareholder
Corporate Governance Officer
Tax Director
Compliance Officer
Business Development Director
Commercial Director
Operations Director
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