A share is a unit of ownership of the company and the number of shares held by the shareholder constitutes its shareholding in the company. This agreement includes a buyer and a seller. The buyer wishes to sell his shares in the company to the buyer. The number of shares and the price dissled would be indicated in the share purchase agreement. Prior to the share purchase agreement, a Memorandum of Understanding is established and the purchaser should perform due diligence to comply with the terms of the Memorandum of Understanding and the share purchase agreement. The terms of the shareholder should have exactly the same conditions as the MEMORANDUM of Understanding. If there is a case of misrepresentation of guarantees and responsibilities, then it will be in good justice and the remedy or seller must reimburse the buyer for the same. It is considered a less complicated transaction than an asset purchase contract. Detailed information on all pension plans, equity plans, insurance plans and other occupational benefit plans. Over the years, the volume of warranties requested has continued to increase and modern share purchase contracts are generally very important, much of which is of the type of guarantees. Before the agreement is reached, a Memorandum of Understanding will be established to explain the proposed sale. A buyer must have due diligence and must ensure that the sales contract and the MEMORANDUM of understanding have the same conditions.
The seller should specifically examine the sales and purchasing sector as well as the area of guarantees and representations. The sales and purchasing sector should have exactly the same conditions as the MOU. If differences are found, they are likely due to the buyer`s duty of care and must be negotiated before the purchase agreement is concluded. For most of the transactions, the purchase price is generally determined against the last financial statements of a target. Purchase price adjustments generally protect a buyer from any change in the value of the target between the value of the target and the transaction. In this context, the buyer and seller must agree on an evaluation method and have similar or coordinated accounting methods in place.