Share Contribution Agreement Template for Philippines

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Key Requirements PROMPT example:

Share Contribution Agreement

"I need a Share Contribution Agreement for contributing 10,000 shares in my tech startup to a holding company, with the transfer scheduled for March 2025, ensuring compliance with Philippine foreign ownership restrictions as the holding company has foreign investors."

Document background
The Share Contribution Agreement is a crucial document used in Philippine corporate transactions when an individual or entity wishes to contribute shares they own in one company as capital to another company. This arrangement is common in corporate restructuring, group reorganizations, and investment scenarios. The agreement must comply with the Corporation Code of the Philippines, Securities Regulation Code, and other relevant laws, particularly regarding share valuation, transfer procedures, and foreign ownership limitations. It typically includes detailed provisions on the shares being contributed, consideration, conditions precedent, representations and warranties, and completion mechanics. The document is essential for maintaining proper corporate documentation and ensuring regulatory compliance with Philippine authorities such as the Securities and Exchange Commission and Bureau of Internal Revenue.
Suggested Sections

1. Parties: Identification of the contributor and the receiving company, including their complete legal names, registration details, and addresses

2. Background: Context of the transaction, including the purpose of the share contribution and brief description of the shares being contributed

3. Definitions: Key terms used throughout the agreement, including specific corporate and securities terminology

4. Share Contribution: Detailed description of the shares being contributed, including quantity, class, and nominal value

5. Consideration: Details of what the contributor receives in exchange for the share contribution

6. Conditions Precedent: Prerequisites that must be satisfied before the share contribution becomes effective

7. Completion: Mechanics and timing of the transfer, including signing and delivery of documents

8. Representations and Warranties: Statements of fact by both parties regarding their capacity, authority, and ownership of shares

9. Covenants: Ongoing obligations of the parties, including regulatory compliance and corporate approvals

10. Tax Provisions: Allocation of responsibility for taxes arising from the transaction

11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and choice of courts

12. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability

Optional Sections

1. Tag-Along Rights: Optional provision giving certain shareholders the right to join in the transfer, relevant if there are multiple shareholders

2. Non-Competition: Restrictions on the contributor's future activities, relevant if the contributor is a strategic player

3. Regulatory Compliance: Additional section for detailed compliance requirements if the transaction involves regulated industries

4. Foreign Investment Provisions: Required if the contributor is a foreign entity, addressing foreign ownership restrictions

5. Earn-out Provisions: Optional if part of the consideration is contingent on future performance

6. Anti-Dilution Rights: Protection against future share issuances, if negotiated by the parties

Suggested Schedules

1. Schedule 1 - Share Details: Detailed description of the shares being contributed, including share certificates numbers and dates

2. Schedule 2 - Contributed Company Information: Corporate information about the company whose shares are being contributed

3. Schedule 3 - Completion Requirements: List of documents and actions required for completion

4. Schedule 4 - Corporate Approvals: List of required corporate and regulatory approvals

5. Appendix A - Form of Share Transfer Instrument: Template for the formal share transfer document

6. Appendix B - Secretary's Certificate: Template for corporate secretary's certification of board approval

7. Appendix C - Deed of Assignment: Template for the assignment of shares

8. Appendix D - Waiver of Pre-emptive Rights: Form of waiver from other shareholders, if applicable

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

Real Estate

Healthcare

Energy

Telecommunications

Retail

Mining

Agriculture

Construction

Professional Services

Transportation

Education

Relevant Teams

Legal

Finance

Corporate Secretarial

Compliance

Tax

Corporate Development

Investment

Business Development

Risk Management

Treasury

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Secretary

Legal Counsel

Corporate Lawyer

Investment Manager

Business Development Director

Finance Director

Compliance Officer

Tax Manager

Corporate Planning Manager

Board Member

Managing Director

Investment Banker

Private Equity 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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