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Share Transfer Agreement

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Prepared for:
[Transferee Company]

Prepared by:
[Transferor Company]

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Share Transfer Agreement

This Share Transfer Agreement (hereinafter referred to as the “Agreement”) is entered and shall be effective as on [Effective Date],

By and Between

[Company Name] (hereinafter referred to as the “Transferor”), having its registered place of business at [Address], and;

[Company Name] (hereinafter referred to as the “Transferee”), having its registered place of business at [Address], 

The Trasferor and the Transferee are collectively referred to as the "Parties" and "Party" individually. 

WHEREAS, the Transferor is the registered proprietor of shares and is desirous of transferring the shares to the Transferee

AND WHEREAS, the Transferee has agreed to acquire the shares from the Transferor

NOW, THEREFORE, in consideration with the mutual covenants and promises made by the Parties hereby agree as follows:

Terms and Conditions

1. Transfer of Shares

The Transferor transfers the title of the shares to the Transferee in consideration of the amount 'Specified in the Transfer Price'. The transfer is absolute and includes all the rights to capital, voting rights, dividends of the shares. The Transferor will transfer the shares to the Transferee on the effective date [Date].

2. Transfer Price

The shares shall be transferred on the price [Price] as agreed by the Parties.

3. Cost of Transfer

Any cost incurred during the transfer of shares shall be borne by the Transferee.

4. Warranty and Indemnity

It is agreed that the Transferor is the true and lawful owner of the shares and is entitled to all the benefits. There are no charges or obligations over the shares. The Transferor has the authority to transfer the shares and enter into the Agreement.

5. Shares

The following comprises shares for transfer:

Name & Address of the Company	Number of Shares	Class of Shares	Face Value	% Paid Up
Company 1	100	Ordinary/Preference	1 each	100
Company 2	100	Ordinary/Preference	1 each	100
Company 3	100	Ordinary/Preference	1 each	100

6. Termination

Either Party may terminate/cancel this Agreement by written notice to the other Party. In case of breach of the terms and conditions herein by any Party, the Party in breach shall remedy it within [Number of Days] days upon receiving such notice of the breach. Failure to remedy the breach will lead to the termination of this Agreement without prior notice.

7. Arbitration

In the event of any dispute arising in and out of this Agreement between the Parties, it shall be resolved by Arbitration. There shall be [Number of Arbitrators] which shall be appointed by [Party Name]. The venue of Arbitration shall be [Venue/Location of Arbitration] and the seat shall be [State of Seat]. The Arbitrator's decision shall be final and will be binding on both the Parties.

8. Miscellaneous

Severability: In the event, any provision of this Agreement is deemed to be invalid or unenforceable, in whole or part, that part shall be severed from the remainder of this Agreement, and all other provisions shall remain in full force and effect as valid and enforceable.
Governing Law: This Agreement shall be governed by and in accordance with the laws of [State].
Variation: This Share Transfer Agreement shall be varied and any such variation shall be made in writing by both the Parties. The Transferor hereby agrees to indemnify and hold harmless the Transferee against any damages arising out of this Agreement.
Notices: Any notices required or permitted by this Agreement shall be in writing and delivered by certified mail or courier to the mentioned address.
Entire Agreement: This is the entire Agreement regarding the terms and conditions of the Company’s engagement. It supersedes all other agreements between the Parties whether oral or written. 

Acceptance and Signature

IN WITNESS THEREOF, the Parties hereto have executed this Agreement as on the day and year mentioned above.

Transferor                                                                                                                                   Transferee

Signature

Assign signer 1

Name

Assign signer 1

Date

Assign signer 1

Signature

Assign signer 2

Name

Assign signer 2

Date

Assign signer 2

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DISCLAIMER: Revvsales, Inc is not a law firm. The content provided herein is for general information purposes only, and does not constitute legal advice. Revvsales, Inc and its partners make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information mentioned hereunder. The use or reliance of any information contained herein is for your personal use and solely at your own risk. You agree to fully release and indemnify Revvsales, Inc from any liability associated with the use of this content. You are advised to obtain independent legal advice before taking or refraining from any action on the basis of the content provided here.

This template is available as a form

Free Share Transfer Agreement Proposal Template

Here's our Share Transfer Agreement template for the transfer of shares between the transferor and the transferee which specifies the detailed information with respect to the share transfer and also legally binds both the parties.

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What is a Share Transfer Agreement?

A share transfer agreement is an agreement that transfers the shares from the seller to the purchaser either by sale or gift. It can also be used as a transfer form. A share transfer agreement is signed between two parties. It serves as proof that both parties have mutually agreed to the terms and conditions of the share transfer.

What is a Share Transfer Agreement Proposal?

It is a document that is required for the transfer of shares in a company. It outlines the particulars of the party transferring the shares to another party. It can be amended as per the terms and conditions set out by both parties.

What are the core elements of a Share Transfer Agreement?

The following are the core elements of a share transfer agreement:

Definition of transfer of shares
Definition of consideration of shares
Date of transfer
Purchase price
Payment
Liability
Creditors
Representations and Warranties

How to draft a Share Transfer Agreement? What are the components of the entire agreement?

A well-written share transfer agreement primarily consists of the following sections. You can add or remove sections and customize them depending on the needs of the prospective client.

Cover page

This is the first section of the entire agreement proposal. It includes basic information like your service company name, transferor, and transferee name.

Transfer of shares

Here, you mention the number of shares that are transferred to the transferee along with the voting rights, dividends, and capital.

Transfer price

This section mentions the transfer price of the shares as agreed by both parties.

Cost of transfer

Here, the transferor mentions the cost of registration of the transfer and who will bear the fixed sum for transferring the shares.

Warranties and indemnities

Provide details on the transfer of shares with respect to agreement warrant and agreement indemnities, for instance - mention the true owner of the shares, rights, and obligations, powers, approvals, etc.

Notice

Mention if any notice has to be given to any of the parties with respect to the share transfer agreement.

Terms and Conditions

This is one of the most crucial sections of this agreement. It sets out the rules and regulations between the parties to avoid any future conflicts. Mention all the clauses that govern this agreement - payment terms, warranties, liabilities, termination, or any other such provision as per your business needs.

Signatures

This is the final section of the proposal. Here, both parties intend to sign the document and enter into a final written agreement.

Tips to write a successful Share Transfer Agreement

1. Leverage templates

Leveraging a share transfer agreement template brings uniformity and structure to your proposal and saves time and effort.

2. Keep it simple

A proposal should be straightforward and crisp. Keep the sentences short and avoid including business jargon.

3. Proofread

Proofread your share transfer agreement. Make sure it is formatted with no grammatical errors.

4. Use small paragraphs

To write an effective share transfer agreement it is essential to use small paragraphs. Breaking up your content into small paragraphs improves readability.

Revv - Your partner to create an effective share transfer agreement

Revv is an all-in-one document automation and eSignature platform. It offers advanced solutions that accelerate the proposal process and help you achieve your goals.

Ready to use templates

Revv templates are customizable as per the client’s requirements. It helps you in drafting flawless proposals within minutes.

Drag-and-drop editor

Revv’s drag-and-drop editor offers rich text editing and formatting options. With this feature, you can quickly add/remove text, images, tables, etc., and create an effective proposal template.

Built-in eSignature

Revv’s eSignature feature allows you to quickly eSign documents with efficient workflows and provides a better customer experience.

Seamless collaboration

Revv enables collaboration within the document through notes along with tagging and attachment features. This enables hassle-free communication and liberates users from back-and-forth email exchanges.

Real-time monitoring

Get real-time visibility with Revv’s activity tracker. It provides intelligent insights on the progress of your share transfer agreement template - who has viewed, signed, accepted, rejected, etc.

Frequently asked questions

What is a share transfer agreement?

A share transfer agreement is an agreement that transfers the shares from the seller to the purchaser either by sale or gift. It serves as proof that both parties have mutually agreed to the terms and conditions of the share transfer.

How do I write a share transfer letter?

A share transfer letter or stock transfer form must include the following details - Date, Recipient address, Name of the shareholder, Number of shares, Transfer price, Name of the company, Address of the company, and Signature.

What are the documents required for share transfer?

The following documents are required for the transfer of shares - Notice by the transferor to the company, Board resolution for considering the notice by the transferor to the company, Letter of the offer made by the company to existing shareholders, Dissent letter from existing shareholders, Share transfer form, Share certificate, and Board resolution for registering the transfer of shares.

How do you write a shareholders agreement?

A shareholders agreement is an agreement that governs the relationship between shareholders, firm management, share ownership, rights, obligations, and shareholder protection.

What is a stock purchase agreement?

A stock purchase agreement is a document for stock acquisition. The purpose of the stock purchase agreement is to confirm the aggregate purchase price paid for the securities to control the risk in an investment.