Document background
The Letter of Intent to Transfer Shares is a crucial preliminary document in New Zealand's corporate landscape, typically used before executing a formal share transfer agreement. This document is employed when a shareholder intends to transfer their shares to another party and wants to formally communicate their intention while establishing the basic terms of the proposed transfer. While not typically legally binding in its entirety, it serves as a framework for negotiations and demonstrates serious intent to proceed with the transaction. The document operates within the context of New Zealand company law, particularly the Companies Act 1993, and usually precedes more detailed due diligence and the execution of formal transfer documents. It's particularly useful in complex transactions where parties need to establish clear understanding before proceeding with detailed negotiations and legal documentation.
