Sale Of Shares Agreement for Ireland

Sale Of Shares Agreement Template for Ireland

A comprehensive legal document governed by Irish law that sets out the terms and conditions for the sale and purchase of shares in a company. This agreement details the transaction specifics including purchase price, payment terms, warranties, and representations made by both parties. It includes provisions for pre-completion and post-completion obligations, conditions precedent, and various protections for both buyer and seller. The document is structured in accordance with Irish company law requirements and includes necessary provisions for compliance with Irish financial regulations and tax legislation.

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What is a Sale Of Shares Agreement?

The Sale Of Shares Agreement is a crucial legal document used in corporate transactions where ownership of a company is transferred through the sale of shares. This agreement, governed by Irish law, is essential when conducting share acquisitions in Ireland, whether for complete or partial ownership transfers. It provides a detailed framework for the transaction, incorporating requirements under the Companies Act 2014 and other relevant Irish legislation. The document typically includes comprehensive warranties about the company's condition, indemnities, conditions precedent to completion, and specific provisions addressing tax and regulatory compliance. It's particularly important for protecting both parties' interests and ensuring a clear record of the transaction terms, while also addressing specific Irish legal and regulatory requirements for share transfers.

What sections should be included in a Sale Of Shares Agreement?

1. Parties: Identification of the seller(s) and buyer(s) with full legal names and addresses

2. Background: Context of the transaction, including brief description of the company and reason for the share sale

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

4. Sale and Purchase: Core transaction terms including number of shares, price, and payment terms

5. Conditions Precedent: Conditions that must be satisfied before completion can occur

6. Pre-completion Obligations: Obligations of both parties between signing and completion

7. Completion: Details of the completion process, timing, and deliverables

8. Seller's Warranties: Warranties given by the seller regarding the shares and the company

9. Buyer's Warranties: Basic warranties given by the buyer, including capacity to enter into the agreement

10. Limitations on Claims: Limitations on warranty claims including time limits and financial thresholds

11. Confidentiality: Obligations regarding confidential information

12. Announcements: Restrictions on public announcements about the transaction

13. Further Assurance: Obligation to take further actions necessary to give effect to the agreement

14. Assignment: Restrictions on assignment of rights under the agreement

15. Notices: Process for giving formal notices under the agreement

16. General Provisions: Standard boilerplate clauses including entire agreement, variations, etc.

17. Governing Law and Jurisdiction: Specification of Irish law as governing law and jurisdiction for disputes

What sections are optional to include in a Sale Of Shares Agreement?

1. Tax Covenant: Detailed tax indemnity from seller to buyer - used in larger transactions or where tax risks are significant

2. Non-competition Restrictions: Restrictions on seller's future competing activities - used when seller has significant market knowledge or relationships

3. Earn-out Provisions: Mechanism for additional payments based on future performance - used when price includes contingent elements

4. Director Resignations: Provisions for resignation of existing directors - used when buyer wants to change management

5. Transitional Services: Arrangements for post-completion services by seller - used when company relies on seller's group services

6. Employee Matters: Specific provisions regarding key employees - used when retention of specific staff is crucial

7. Intellectual Property Rights: Specific provisions regarding IP - used when IP is a crucial asset

8. Break Fee: Fee payable if transaction fails - used in larger transactions or where abort risk is significant

What schedules should be included in a Sale Of Shares Agreement?

1. Details of the Company: Complete corporate information including registration details, share capital, and directors

2. Conditions Precedent: Detailed list of all conditions that must be satisfied before completion

3. Completion Obligations: Detailed list of actions and deliverables required at completion

4. Warranties: Full set of warranties given by the seller regarding the company and its business

5. Properties: Details of all real estate owned or leased by the company

6. Intellectual Property: List of all IP owned or licensed by the company

7. Material Contracts: List and details of key commercial contracts

8. Employees: Details of employees including terms of employment and benefits

9. Tax Schedule: Detailed tax warranties and tax covenant provisions

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

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

Jurisdiction

Ireland

Publisher

Genie AI

Document Type

Contract to Sell

Cost

Free to use
Clauses
Relevant Industries

Technology

Manufacturing

Financial Services

Professional Services

Real Estate

Healthcare

Retail

Energy

Telecommunications

Media & Entertainment

Agriculture

Construction

Transport & Logistics

Hospitality

Education

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Tax

Compliance

Risk Management

Business Development

Executive Leadership

Corporate Secretariat

Treasury

Commercial

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Company Secretary

Finance Director

Managing Director

Investment Manager

Corporate Development Manager

Mergers & Acquisitions Director

Business Development Director

Tax Director

Compliance Officer

Risk Manager

Board Director

Commercial Director

General Counsel

Transaction 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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