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This agreement provides for the cession of a contract from one party to another. If the contract incorporates obligations by the cedent and/or if the contract itself precludes a cession in the absence of the consent of the cessionary, then a written cession of the agreement is required.
R195
One of the mechanisms for acquiring shares can be by way of subscribing for shares in a company. It is important that the company’s authorised share capital is sufficient and also that the requirements of the company’s Memorandum of Incorporation are complied with.
This agreement regulates the purchase and sale of shares in a company. It regulates important matters like the purchase price, payment details, transfer mechanisms, confidentiality, dispute resolution. If the seller remains a shareholder in the company, or if there is more than one shareholder in the company after the transaction, please remember that it is critical to also conclude a proper shareholders agreement (which should also be supported by a new Memorandum of Incorporation).
Pledging shares as security for a debt can be a complex matter. In addition to concluding a binding agreement, the pledgee must actually receive the original share certificate for safe keeping.
