Document background
The Shareholder Purchase Agreement is a critical document used in South African corporate transactions when one party wishes to acquire shares from another party in a company. It serves as the primary transaction document that governs the terms of the share transfer, including purchase price, payment terms, warranties, and completion mechanics. The agreement must comply with South African legislation, particularly the Companies Act 71 of 2008, tax laws, and where applicable, BEE legislation and exchange control regulations. It is typically used in both private and public company contexts, though requirements may vary depending on the company type and transaction size. The document includes comprehensive warranties about the company's business, establishes conditions precedent to the transaction, and provides mechanisms for protecting both parties' interests throughout the transfer process.
