Document background
The Share Purchase Agreement Between Shareholders is essential when existing shareholders wish to transfer ownership stakes within a company. This document is commonly used in the United States when shareholders seek to increase or decrease their ownership positions, during succession planning, or when implementing buy-sell arrangements. It must comply with both federal securities laws and state-specific regulations, particularly concerning private company share transfers. The agreement typically includes detailed provisions about share valuation, payment terms, representations and warranties, and may also address pre-emptive rights, tag-along rights, and other shareholder protections.
