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Share Sale Agreement for Philippines

Share Sale Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that formalizes the sale and purchase of shares in a company. This agreement outlines the terms and conditions of the share transfer, including purchase price, payment terms, representations and warranties, and closing conditions. It ensures compliance with the Philippine Corporation Code, Securities Regulation Code, and relevant tax laws while protecting both parties' interests through detailed provisions covering pre-completion obligations, warranties, and post-completion arrangements. The agreement typically includes mechanisms for price adjustments, liability limitations, and dispute resolution under Philippine jurisdiction.

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Share Sale Agreement

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What is a Share Sale Agreement?

The Share Sale Agreement is a crucial document used when transferring ownership of shares in a Philippine company from one party to another. It is essential for both private and public company transactions, though specific requirements may vary. The agreement must comply with Philippine corporate and securities laws, including the Revised Corporation Code and Securities Regulation Code. It typically contains detailed provisions about the transaction structure, purchase price mechanisms, warranties about the company's condition, and various protections for both buyer and seller. The document is particularly important as it serves as evidence of the transfer for regulatory filings, tax purposes, and corporate records. It should address specific Philippine law requirements such as foreign ownership restrictions (if applicable), tax implications, and necessary regulatory approvals.

What sections should be included in a Share Sale Agreement?

1. Parties: Identification of the seller(s) and purchaser(s), including complete legal names and addresses

2. Background: Context of the transaction, including description of the target company and purpose of the agreement

3. Definitions: Defined terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including the shares being sold and purchase price

5. Purchase Price and Payment: Detailed terms of consideration, payment method, and timing

6. Conditions Precedent: Prerequisites that must be satisfied before completion

7. Pre-Completion Obligations: Obligations of parties between signing and completion

8. Completion: Mechanics and requirements for closing the transaction

9. Seller's Warranties: Representations and warranties regarding the seller and the shares

10. Purchaser's Warranties: Representations and warranties regarding the purchaser

11. Company Warranties: Representations and warranties regarding the target company

12. Tax Covenants: Provisions dealing with tax liabilities and indemnities

13. Limitations on Liability: Limitations on warranty claims and general liability

14. Confidentiality: Provisions regarding confidential information

15. Announcements: Requirements for public announcements about the transaction

16. Further Assurance: Obligations to take further actions to give effect to the agreement

17. Notices: Process for giving formal notices under the agreement

18. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, etc.

What sections are optional to include in a Share Sale Agreement?

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

2. Seller Financing: Include when the seller is providing financing for the purchase

3. Non-Competition: Include when the seller needs to be restricted from competing

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

5. Intellectual Property: Include when IP assets are material to the transaction

6. Real Property: Include when the company owns significant real estate assets

7. Transitional Services: Include when the seller will provide post-completion services

8. Foreign Investment Provisions: Include when the purchaser is a foreign entity

9. Break Fee: Include when there's an agreement on compensation if the deal fails

What schedules should be included in a Share Sale Agreement?

1. Details of the Company: Corporate information, shareholding structure, and subsidiaries

2. Details of the Shares: Complete description of shares being transferred

3. Purchase Price Calculation: Detailed breakdown of purchase price components

4. Completion Requirements: Detailed list of documents and actions required at completion

5. Warranties: Detailed warranties about the company and its business

6. Properties: List of real estate and material assets

7. Intellectual Property: Schedule of IP rights and registrations

8. Material Contracts: List of important contracts and agreements

9. Employee Information: Details of key employees and benefits

10. Disclosed Matters: Exceptions to warranties and known issues

11. Form of Resignation Letters: Template resignation letters for outgoing directors

12. Form of Board Resolutions: Template board resolutions for completion

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

Agreement Contract

Cost

Free to use
Relevant legal definitions




























































Clauses







































Relevant Industries

Financial Services

Technology

Manufacturing

Real Estate

Retail

Healthcare

Energy

Telecommunications

Professional Services

Agriculture

Mining

Construction

Transportation

Education

Hospitality

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Risk Management

Corporate Secretariat

Business Development

Tax

Treasury

Board of Directors

Executive Management

Regulatory Affairs

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Company Secretary

Managing Director

Investment Banker

Corporate Finance Manager

Compliance Officer

Due Diligence Officer

Business Development Manager

Mergers & Acquisitions Director

Transaction Advisory Manager

Corporate Development Director

Board Member

Finance Director

Legal Director

Risk Manager

Securities Compliance Officer

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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