Document background
The Share Block Sale Agreement is a crucial document used in Irish corporate transactions when a significant portion of a company's shares is being transferred from one party to another. It is particularly relevant when the transaction involves a substantial but not necessarily controlling stake in the company. The agreement must comply with Irish corporate law requirements, particularly the Companies Act 2014, and address tax implications under Irish legislation. The document typically becomes necessary when shareholders wish to exit their investment, when companies are restructuring their ownership, or during strategic investment transactions. It includes detailed provisions covering share valuation, payment mechanisms, warranties about the company's condition, and protections for both buyer and seller. The agreement also addresses regulatory requirements, such as competition law considerations if applicable, and stamp duty obligations. This type of agreement is distinct from a full share purchase agreement in that it may not trigger change of control provisions and might have less extensive warranty coverage.
