Document background
The Sales of Shares Agreement is a crucial document used in Canadian corporate transactions when transferring ownership of company shares from one party to another. It serves as the primary transaction document in share acquisitions, whether for partial or complete ownership transfers. This agreement must comply with Canadian federal and provincial corporate laws, securities regulations, and tax legislation. It typically includes comprehensive details about the transaction structure, purchase price mechanics, warranties about the company's condition, pre-completion and post-completion obligations, and various protections for both buyers and sellers. The document is particularly important as it provides legal certainty and risk allocation between parties, while ensuring compliance with Canadian regulatory requirements. It's commonly used in both private company transactions and sales of shares in public companies' private placements.
