A Share Sale Agreement (SSA) is a legal document that outlines the terms of the sale and purchase of shares in a company and which is primarily governed by the Corporations Act 2001. A SSA serves as a crucial instrument in facilitating the transfer of ownership of shares from a seller to a buyer, ensuring a transparent and legally binding transaction.
The agreement typically includes details such as the identification of the parties involved, the number and type of shares being sold, the purchase price, and any conditions precedent or subsequent to the sale. It may also cover representations and warranties made by the seller regarding the shares, indemnities, and the allocation of risks between the parties.
Having a well-drafted SSA is crucial when selling shares as it helps protect the parties’ interests, clarifies the terms of the transaction, and ensures legal compliance.