Company Sales Agreement for Malta

Company Sales Agreement Template for Malta

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Company Sales Agreement

"I need a Company Sales Agreement under Maltese law for the sale of my technology consulting firm, with specific provisions for intellectual property protection and employee retention, planned for completion by March 2025."

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What is a Company Sales Agreement?

The Company Sales Agreement is a crucial legal document used in corporate transactions under Maltese law for transferring ownership of a business entity. This comprehensive agreement is essential when conducting mergers and acquisitions in Malta, whether through share sales or asset transfers. It must comply with the Maltese Companies Act (Chapter 386), relevant EU regulations, and other applicable local laws. The document typically includes detailed provisions covering purchase price mechanisms, warranties and indemnities, conditions precedent, completion mechanics, and post-completion obligations. It also addresses specific Maltese regulatory requirements, such as those related to employment protection, competition law, and tax implications. The agreement serves as the primary transaction document, protecting both parties' interests while ensuring legal compliance and smooth business transfer.

What sections should be included in a Company Sales Agreement?

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, brief description of the company being sold, 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) and the basic agreement to sell and purchase

5. Purchase Price: Details of the consideration, including amount, payment terms, and any price adjustment mechanisms

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

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

8. Completion: Mechanics of completion, including timing, location, and actions required at completion

9. Warranties: Seller's warranties about the company, its assets, liabilities, and business

10. Limitations on Liability: Limitations on seller's liability under the warranties and other provisions

11. Tax Covenants: Specific provisions relating to tax matters and allocation of tax liabilities

12. Confidentiality: Obligations regarding confidential information and announcements

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

14. General Provisions: Standard boilerplate provisions including entire agreement, variations, severability

15. Governing Law and Jurisdiction: Specification of Maltese law as governing law and jurisdiction for disputes

What sections are optional to include in a Company Sales Agreement?

1. Intellectual Property: Required when the company owns significant IP assets that need special treatment or protection

2. Employee Matters: Needed when there are specific arrangements regarding employees or when TUPE regulations apply

3. Property: Required when the company owns or leases significant real estate assets

4. Data Protection: Needed when the transaction involves significant personal data transfers

5. Non-Competition: Optional restrictions on seller's future business activities

6. Earn-out Provisions: Required when part of the purchase price is contingent on future performance

7. Bank Guarantees: Needed when payment terms include bank guarantees or similar security

8. Break Fee: Optional provisions for compensation if the deal fails under specific circumstances

9. Transitional Services: Required when seller will provide services to the company post-completion

What schedules should be included in a Company Sales Agreement?

1. Company Details: Detailed information about the company including corporate information and capital structure

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

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

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

5. Employee Information: Details of all employees including terms of employment and benefits

6. Completion Requirements: Detailed list of documents and actions required at completion

7. Warranties: Detailed warranties about the company and its business

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

9. Net Working Capital Statement: Agreed form of working capital calculation and target amounts

10. Bank Account Details: Details for payment of purchase price and other payments

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

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Technology

Manufacturing

Retail

Healthcare

Real Estate

Professional Services

Tourism and Hospitality

Energy

Transportation and Logistics

Telecommunications

Construction

Education

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Tax

Compliance

Human Resources

Risk Management

Operations

Executive Leadership

Corporate Secretariat

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Corporate Lawyer

Legal Counsel

Company Secretary

Finance Director

Mergers & Acquisitions Director

Business Development Manager

Risk Manager

Compliance Officer

Tax Director

Human Resources Director

Operations Director

Commercial Director

Board Member

Industries
Companies Act (Chapter 386 of the Laws of Malta): Primary legislation governing company formations, operations, and transfers in Malta. Contains provisions for share transfers, company restructuring, and procedural requirements for company sales.
Civil Code (Chapter 16 of the Laws of Malta): Contains fundamental principles of contract law applicable to sale agreements, including provisions on validity, consent, and obligations of the contracting parties.
Transfer of Business (Protection of Employment) Regulations: Protects employees' rights during business transfers, ensuring continuation of employment terms and conditions under new ownership.
Value Added Tax Act (Chapter 406): Governs VAT implications in company sales and transfers, including share transfers and asset deals.
Income Tax Act (Chapter 123): Regulates tax implications of company sales, including capital gains tax considerations and stamp duty requirements.
Competition Act (Chapter 379): Ensures company sales comply with competition law requirements and don't create monopolistic situations in the market.
Data Protection Act: Ensures compliance with GDPR and local data protection requirements during company transfers, particularly regarding customer and employee data.
Prevention of Money Laundering Act (Chapter 373): Required for due diligence and compliance in company sales to prevent money laundering and ensure legitimate transactions.
EU Merger Control Regulation: Applicable if the company sale meets certain turnover thresholds requiring EU-level merger control notification.
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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