Document background
The Deed of Sale of Shares is a crucial legal instrument in South African corporate transactions, used when transferring ownership of shares from one party to another. This document is essential for both private and public companies, though the requirements and complexity may vary depending on the company type and transaction size. The deed must comply with the Companies Act 71 of 2008, Financial Markets Act 2012, and other relevant South African legislation. It typically includes comprehensive details about the shares being transferred, warranties about the company's status and the shares' ownership, conditions precedent, and completion mechanics. When drafting a Deed of Sale of Shares, special attention must be paid to South African exchange control regulations if foreign parties are involved, and tax implications must be carefully considered.
