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Share Purchase Agreement for Philippines

Share Purchase Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that documents the terms and conditions for the sale and purchase of shares in a company. The agreement details the purchase price, payment terms, warranties, representations, and obligations of both the seller and purchaser. It incorporates specific requirements under Philippine corporate law, including compliance with the Revised Corporation Code, Securities Regulation Code, and where applicable, foreign ownership restrictions. The document includes provisions for completion mechanics, conditions precedent, warranties, and post-completion obligations, ensuring all aspects of the share transfer are properly documented and legally enforceable under Philippine jurisdiction.

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What is a Share Purchase Agreement?

The Share Purchase Agreement is a fundamental document used in corporate acquisitions and investments in the Philippines, essential for documenting the transfer of ownership in a company through the sale of shares. It is commonly used in both private and public company transactions, subject to the regulatory framework established by the Philippine Securities and Exchange Commission and the Revised Corporation Code. The agreement must comply with local corporate laws, tax regulations, and if involving foreign investors, the Foreign Investments Act. The document typically includes detailed provisions covering purchase price mechanisms, warranties, indemnities, conditions precedent, and completion requirements. It's particularly crucial in protecting both buyers' and sellers' interests by clearly defining their rights, obligations, and remedies under Philippine law.

What sections should be included in a Share Purchase Agreement?

1. Parties: Identification of the Seller(s), Purchaser(s) and the Company whose shares are being sold

2. Background: Context of the transaction, including current ownership structure and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Sale and Purchase: Core transaction terms including number of shares, purchase price, and payment terms

5. Completion: Details of when and where completion will take place and what will happen at completion

6. Seller's Warranties: Representations and warranties given by the seller regarding the shares and the company

7. Purchaser's Warranties: Basic warranties from the purchaser, including capacity to enter into the agreement

8. Limitations on Liability: Limitations on the seller's liability under the warranties and claims procedures

9. Confidentiality: Obligations to keep the transaction and company information confidential

10. Announcements: Restrictions and requirements for public announcements about the transaction

11. Further Assurance: Obligations to take further actions necessary to give effect to the agreement

12. Assignments: Restrictions on assigning rights under the agreement

13. Notices: Process and requirements for giving formal notices under the agreement

14. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

What sections are optional to include in a Share Purchase Agreement?

1. Conditions Precedent: Include when completion is subject to certain conditions being satisfied, such as regulatory approvals or third-party consents

2. Pre-Completion Obligations: Include when there will be a gap between signing and completion, to regulate conduct of business during this period

3. Tax Covenants: Include when specific tax indemnities or arrangements are required

4. Non-Competition: Include when the seller needs to be restricted from competing with the company post-sale

5. Earn-out Provisions: Include when part of the purchase price is contingent on future performance

6. Break Fee: Include when there's a need to specify compensation if either party backs out

7. Foreign Investment Provisions: Include when the purchaser is a foreign entity, to address foreign ownership restrictions

8. Employee Matters: Include when specific arrangements for key employees need to be addressed

What schedules should be included in a Share Purchase Agreement?

1. Details of the Company: Corporate information, including registration details, directors, and share capital structure

2. Details of the Sale Shares: Specific details of the shares being sold, including share certificate numbers and class of shares

3. Purchase Price Calculation: Detailed methodology for calculating the purchase price, including any adjustments

4. Completion Obligations: Detailed list of documents and actions required at completion

5. Warranties: Full list of seller's warranties about the company and its business

6. Properties: Details of all real estate owned or leased by the company

7. Intellectual Property: List of all IP owned or licensed by the company

8. Material Contracts: List and details of the company's material contracts

9. Employee Information: Details of employees, including benefits and any outstanding issues

10. Tax Affairs: Details of the company's tax position and any ongoing disputes

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions































































Clauses









































Relevant Industries

Banking & Finance

Technology

Manufacturing

Real Estate

Retail

Energy

Healthcare

Telecommunications

Mining

Agriculture

Construction

Professional Services

Transportation & Logistics

Education

Media & Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Tax

Due Diligence

Corporate Secretarial

Risk Management

Treasury

Board of Directors

Executive Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Investment Banker

Corporate Secretary

Finance Director

Mergers & Acquisitions Director

Business Development Manager

Due Diligence Officer

Compliance Officer

Tax Director

Managing Director

Board Member

Financial Controller

Investment Manager

Private Equity Manager

Corporate Development Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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