Document background
The Transfer Of Shares Agreement is a crucial legal document used in Hong Kong corporate transactions when ownership of company shares needs to be transferred between parties. It is essential for both private and public company share transfers, though specific requirements may vary. The agreement must comply with Hong Kong's Companies Ordinance, Stamp Duty Ordinance, and other relevant legislation. This document is particularly important as it provides legal certainty and protection for both transferor and transferee, documenting the terms of sale, warranties, and indemnities. It should be used whenever shares are being transferred, whether in the context of a simple share sale, corporate restructuring, or as part of a larger M&A transaction. The agreement typically includes details about the shares being transferred, purchase price, payment mechanisms, conditions precedent, completion arrangements, and various representations and warranties.
