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Sale Of Shares Agreement for Philippines

Sale Of Shares Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that formalizes the transfer of ownership of shares from one party (seller) to another (buyer). The agreement details the terms and conditions of the share sale, including purchase price, payment terms, warranties, and representations. It ensures compliance with the Philippine Revised Corporation Code, Securities Regulation Code, and other relevant local legislation. The document includes provisions for due diligence, conditions precedent, completion mechanics, and post-completion obligations, while addressing specific requirements under Philippine corporate and tax laws.

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Sale Of Shares Agreement

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What is a Sale Of Shares Agreement?

A Sale of Shares Agreement is a crucial document used in Philippine corporate transactions when transferring ownership of shares in a company. This agreement is essential for both private and public company share transfers, though requirements may vary based on the company type and transaction size. The document must comply with the Philippine Revised Corporation Code, Securities Regulation Code, and relevant tax regulations. It typically includes detailed provisions on share valuation, payment terms, warranties, representations, and conditions precedent. The agreement becomes particularly important in cross-border transactions where foreign investment restrictions may apply. It serves as the primary document evidencing the transfer of ownership and protecting both parties' interests through clearly defined rights, obligations, and remedies under Philippine law.

What sections should be included in a Sale Of Shares Agreement?

1. Parties: Identification of the Seller(s) and Buyer(s) with complete details as required under Philippine law

2. Background: Context of the transaction, including brief description of the company and the shares being sold

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core terms of the transaction including the number of shares, price, and payment terms

5. Conditions Precedent: Conditions that must be satisfied before completion of the sale

6. Completion: Details of when, where and how completion will take place, including completion deliverables

7. Seller's Warranties: Warranties regarding the shares, the company, and the seller's capacity to sell

8. Buyer's Warranties: Warranties regarding the buyer's capacity and authority to purchase

9. Tax Matters: Provisions dealing with tax liabilities and responsibilities

10. Confidentiality: Obligations regarding confidential information

11. Notices: Process and requirements for giving notices under the agreement

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

13. Execution: Signature blocks and execution formalities

What sections are optional to include in a Sale Of Shares Agreement?

1. Regulatory Compliance: Required when the transaction needs specific regulatory approvals (e.g., Philippine Competition Commission clearance)

2. Post-Completion Obligations: Used when there are specific actions required after completion

3. Non-Competition: Include when restricting seller from competing with the company post-sale

4. Employee Matters: Relevant when there are specific arrangements regarding key employees

5. Intellectual Property: Important when the company has significant IP assets

6. Foreign Investment Provisions: Required when the buyer is a foreign entity, addressing Foreign Investments Act compliance

7. Break Fee: Optional provision for payment if the deal fails under specific circumstances

8. Earn-out Provisions: Used when part of the purchase price is contingent on future performance

What schedules should be included in a Sale Of Shares Agreement?

1. Details of the Shares: Complete description of shares being sold including share certificates numbers and class of shares

2. Company Information: Detailed information about the company including corporate documents and structure

3. Warranties: Detailed warranties and representations by the seller about the company and its business

4. Encumbrances: List of any existing encumbrances on the shares

5. Company Assets: Detailed list of company assets if relevant to the transaction

6. Completion Deliverables: Detailed list of documents and items to be delivered at completion

7. Corporate Approvals: Copies of relevant corporate approvals and resolutions

8. Regulatory Filings: Forms and documents required for regulatory compliance

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions










































Clauses








































Relevant Industries

Financial Services

Manufacturing

Technology

Real Estate

Retail

Healthcare

Energy

Transportation

Telecommunications

Professional Services

Construction

Agriculture

Mining

Education

Hospitality

Relevant Teams

Legal

Finance

Corporate Secretariat

Compliance

Risk Management

Corporate Development

Mergers & Acquisitions

Tax

Corporate Governance

Board of Directors

Investment

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Company Secretary

Corporate Director

Managing Director

Investment Banker

Financial Controller

Compliance Officer

Business Development Manager

Corporate Finance Manager

Mergers & Acquisitions Director

Tax Manager

Corporate Governance Officer

Risk Management Officer

Board Member

General Counsel

Partner (Law Firm)

Investment Director

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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