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A share buy back agreement is concluded when the company buys back some of its shares. These agreements require compliance with the company’s Memorandum of Incorporation as well as the Companies Act, 2008. This particular agreement includes a restraint of trade in terms whereof the seller of the shares undertakes to not compete with the Company.
R495
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. This particular agreement includes a restraint of trade in terms whereof the seller of the shares undertakes to not compete with the Company.. 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).
If a third party stands in for the debt of (for example) a company, then that constitute a suretyship. If the suretyship undertaking is supported by a pledge of shares, then this is the correct document for you. Importantly, the pledge must be accompanied by the pledgee actually holding the share certificate.
If you are purchasing a business or even the shares in a company, you need to conduct a due dliligence. The due diligence checklist is a comprehensive list of the items that you typically need to investigate in properly assessing the affairs of the company.
