Document background
A Simple Share Transfer Agreement is a fundamental legal document used in Canadian business transactions to formalize and execute the transfer of shares from one party to another. This document is particularly relevant when shareholders wish to sell or transfer their shares in a corporation to another individual or entity. The agreement is designed to comply with Canadian federal legislation (such as the Canada Business Corporations Act) and relevant provincial corporate and securities laws. It typically includes essential details such as the number and class of shares being transferred, purchase price, payment terms, and basic representations about share ownership and authority to sell. This type of agreement is commonly used in smaller private company transactions where the transfer is straightforward and doesn't require complex conditions or extensive warranties. It provides documentary evidence of the transfer for corporate records and tax purposes.
