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Share Sale Agreement for Austria

Share Sale Agreement Template for Austria

A Share Sale Agreement under Austrian law is a legally binding contract that documents the terms and conditions for the transfer of ownership of shares in a company from a seller to a buyer. The agreement is governed by Austrian corporate and civil law, particularly the Austrian Civil Code (ABGB), Stock Corporation Act (AktG), and Limited Liability Companies Act (GmbHG). It contains detailed provisions regarding the sale price, payment terms, warranties, representations, conditions precedent, and completion mechanics. The document typically includes comprehensive provisions for due diligence findings, warranty limitations, and specific indemnities, while complying with Austrian formal requirements for share transfers.

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What is a Share Sale Agreement?

The Share Sale Agreement is a fundamental document in Austrian corporate transactions, used when transferring ownership of shares in private or public companies. It serves as the primary transaction document that captures all commercial and legal terms agreed between the parties, including the purchase price mechanism, warranties, indemnities, and closing conditions. Under Austrian law, certain formal requirements must be met for the valid transfer of shares, particularly for GmbH shares which require notarization. The agreement must comply with Austrian corporate law requirements, including those set out in the ABGB, AktG, and GmbHG. This document is typically prepared following extensive negotiations and due diligence, and often involves input from multiple professional advisors including lawyers, tax consultants, and financial advisors. The Share Sale Agreement will also address specific Austrian law considerations such as merger control requirements, transfer restrictions, and corporate approvals.

What sections should be included in a Share Sale Agreement?

1. Parties: Identification of the seller(s) and buyer(s), including full legal names, registration details, and addresses

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

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Sale and Purchase: Core transaction terms including description of shares being sold, purchase price, and payment terms

5. Conditions Precedent: Conditions that must be satisfied before completion, including regulatory approvals and third-party consents

6. Pre-Completion Obligations: Obligations of the parties between signing and completion, including conduct of business requirements

7. Completion: Mechanics of closing, including timing, location, and actions required at completion

8. Warranties: Seller's representations and warranties regarding the shares, target company, and business

9. Warranty Limitations: Limitations on seller's liability for warranty breaches, including caps, thresholds, and time limits

10. Covenants: Ongoing obligations of the parties, including non-compete and confidentiality provisions

11. Tax Matters: Tax-related provisions, including allocations of liability and tax covenants

12. Confidentiality: Obligations regarding confidential information and announcements

13. Notices: Process and requirements for formal communications between parties

14. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement

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

1. Price Adjustment: Mechanisms for post-completion price adjustments based on completion accounts or earn-outs

2. Seller Financing: Terms of any vendor loan or deferred payment arrangements

3. Employee Matters: Specific provisions regarding employees and employee benefits

4. Real Estate: Specific provisions regarding company-owned real estate

5. Intellectual Property: Detailed provisions regarding IP rights and licenses

6. Bank Financing: Provisions relating to third-party financing arrangements

7. Break Fee: Provisions for payment if the transaction fails under specific circumstances

8. Specific Indemnities: Indemnification for specific identified risks or liabilities

9. Data Protection: Specific provisions regarding GDPR compliance and data transfer

10. Environmental Matters: Specific provisions regarding environmental liabilities and compliance

What schedules should be included in a Share Sale Agreement?

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

2. Warranties: Detailed seller warranties regarding the company and business

3. Properties: List and details of real estate owned or leased by the target company

4. Material Contracts: List and details of key commercial contracts

5. Intellectual Property: List of IP rights owned or licensed by the target company

6. Employees: List of employees and their key employment terms

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

8. Data Room Index: Index of documents disclosed during due diligence

9. Disclosure Letter: Specific disclosures against the warranties

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

11. Form of Powers of Attorney: Template powers of attorney required for completion

12. Completion Accounts Principles: Accounting principles for preparation of completion accounts

Authors

Alex Denne

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

Jurisdiction

Austria

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions





































































Clauses














































Relevant Industries

Financial Services

Manufacturing

Technology

Real Estate

Healthcare

Retail

Energy

Transportation

Professional Services

Construction

Agriculture

Telecommunications

Media

Hospitality

Industrial

Consumer Goods

Education

Mining

Automotive

Pharmaceuticals

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Tax

Compliance

Risk Management

Strategy

Business Development

Executive Leadership

Corporate Secretariat

Treasury

Due Diligence

Corporate Governance

Investor Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Director

Corporate Lawyer

M&A Lawyer

Financial Director

Investment Manager

Business Development Director

Company Secretary

Corporate Development Manager

Due Diligence Manager

Risk Manager

Compliance Officer

Tax Director

Strategy Director

Board Member

Managing Director

Finance Manager

Legal Counsel

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

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