Document background
The Share Sale Agreement is a fundamental document in Canadian corporate transactions, used when transferring ownership of a company through the sale of its shares. This agreement is essential for both private and public company transactions, though its application varies based on the size and nature of the deal. It must comply with Canadian federal laws such as the Canada Business Corporations Act and provincial securities regulations, while also addressing tax implications under the Income Tax Act. The document typically includes detailed provisions for purchase price mechanisms, warranties, indemnities, and closing conditions, reflecting Canadian market practice and legal requirements. It's particularly important in ensuring regulatory compliance, especially regarding securities transfer rules, foreign investment reviews (where applicable), and competition law considerations.
