Document background
An Agreement To Sell Shares is a fundamental document used in Canadian corporate transactions when transferring ownership of company shares from one party to another. This document is essential for both private and public company transactions, though its specific terms may vary depending on the size and complexity of the deal. It becomes necessary whenever there is a need to document share transfers, whether for a complete business sale, partial ownership transfer, or corporate restructuring. The agreement must comply with Canadian federal and provincial requirements, including the Canada Business Corporations Act, provincial securities regulations, and relevant tax laws. It typically includes detailed provisions about the transaction structure, warranties, indemnities, and various conditions that must be met before completion. The document serves as the primary record of the transaction terms and provides legal protection for all parties involved.
