¶¶Òõ¶ÌÊÓÆµ

Share Buyout Agreement Template for South Africa

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Share Buyout Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Share Buyout Agreement

"I need a Share Buyout Agreement for our South African technology company to repurchase 25% of its shares from a retiring founder, with completion planned for March 2025, including earn-out provisions based on the company's performance over the next two years."

Document background
The Share Buyout Agreement is a crucial document in South African corporate transactions, used when a company seeks to repurchase its own shares from existing shareholders. This type of agreement is commonly employed in scenarios including corporate restructuring, shareholder exits, employee share scheme implementations, or strategic share capital reorganizations. The document must comply with South African legislation, particularly the Companies Act 71 of 2008, which sets out specific requirements for share buybacks, including solvency and liquidity tests. The agreement typically includes detailed provisions on valuation, payment terms, warranties, tax implications, and completion mechanics, while ensuring compliance with exchange control regulations if foreign shareholders are involved. It's essential for maintaining proper corporate governance and protecting all parties' interests in share repurchase transactions.
Suggested Sections

1. Parties: Identification of the parties to the agreement, including the Company, the Seller(s), and any other relevant parties

2. Background: Context of the transaction, including current shareholding structure and reason for the buyout

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 being sold, purchase price, and payment terms

5. Conditions Precedent: Any conditions that must be met before the transaction becomes effective, including regulatory approvals

6. Purchase Price: Detailed provisions regarding the consideration, including payment method, timing, and any adjustments

7. Completion: Process and requirements for closing the transaction, including timing and delivery of documents

8. Seller Warranties: Representations and warranties given by the seller regarding the shares and the company

9. Company Warranties: Representations and warranties given by the company regarding its business and affairs

10. Tax Matters: Provisions dealing with tax implications and responsibilities

11. Confidentiality: Obligations regarding confidential information

12. Notices: Process and requirements for formal communications between parties

13. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement

Optional Sections

1. Purchase Price Adjustment: Used when the final price may be adjusted based on completion accounts or other factors

2. External Finance: Required when the buyout is funded through external financing, detailing the financing arrangements

3. Continuing Obligations: Needed when the seller will retain certain obligations or roles post-completion

4. Non-Competition: Include when restrictions on the seller's future business activities are required

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

6. Employee Matters: Required when the seller is also an employee and employment arrangements need to be addressed

7. Intellectual Property: Important when the company's IP is significant and specific provisions are needed

8. Multiple Sellers Provisions: Required when there are multiple sellers with different terms or conditions

Suggested Schedules

1. Details of the Sale Shares: Schedule detailing the shares being sold, including share certificate numbers and class of shares

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

3. Warranties: Detailed warranties given by the seller and/or company

4. Company Information: Key details about the company including share capital, subsidiaries, and material contracts

5. Properties: Details of any material properties owned or leased by the company

6. Intellectual Property: Schedule of company's intellectual property rights

7. Form of Resignation Letter: Template resignation letter for selling shareholders who are also directors

8. Tax Covenant: Detailed provisions regarding tax indemnities and conduct of tax affairs

9. Completion Accounts: Format and requirements for completion accounts if price adjustment mechanism is included

Authors

Alex Denne

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

Relevant legal definitions














































Clauses









































Relevant Industries

Financial Services

Professional Services

Manufacturing

Technology

Mining

Retail

Real Estate

Healthcare

Agriculture

Energy

Telecommunications

Construction

Transportation

Education

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Treasury

Tax

Compliance

Risk Management

Company Secretariat

Board of Directors

Executive Management

Shareholder Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Company Secretary

Legal Counsel

Corporate Lawyer

Financial Director

Managing Director

Board Director

Compliance Officer

Corporate Finance Manager

Investment Manager

Treasury Manager

Tax Manager

Risk Manager

Corporate Development Manager

Shareholder Relations Manager

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

Find the exact document you need

Simple Share Exchange Agreement

A legal agreement governing the exchange of shares between companies under South African law, compliant with the Companies Act and related regulations.

find out more

Share Surrender Agreement

A South African law-governed agreement documenting the voluntary surrender of shares by a shareholder back to the company, ensuring regulatory compliance and proper transfer documentation.

find out more

Term Sheet Share Purchase Agreement

A preliminary agreement outlining key terms for share acquisition in South Africa, setting framework for final Share Purchase Agreement.

find out more

Share Buyback Contract

A South African law-governed agreement for a company to repurchase its own shares from existing shareholders, ensuring compliance with the Companies Act and relevant regulations.

find out more

Contract For Shares Of A Company

A South African law-governed agreement for the sale and purchase of company shares, outlining terms, conditions, and transfer requirements.

find out more

Share Block Sale Agreement

A South African legal agreement for the sale and transfer of shares in a share block company, conferring property use rights to the purchaser.

find out more

Stock Lease Agreement

A South African legal agreement governing the temporary transfer of livestock ownership, detailing terms for livestock lease, care requirements, and compliance with local agricultural regulations.

find out more

Share Vesting Agreement

A South African law-governed agreement that sets out terms for gradual share ownership rights acquisition by recipients, typically used for employee incentivization.

find out more

Sale Of Shares Contract

A South African law-governed agreement for the sale and transfer of company shares between parties, detailing terms, conditions, and regulatory compliance requirements.

find out more

Simple Share Purchase Agreement

A South African law-governed agreement for the purchase and sale of company shares, outlining key terms and conditions of the share transfer.

find out more

Business Shares Agreement

A South African law-governed agreement that establishes shareholders' rights, obligations, and relationships within a company, ensuring compliance with local company law and regulations.

find out more

Stock Redemption Agreement

A South African law-governed agreement detailing terms and conditions for a company's repurchase of its own shares from existing shareholders.

find out more

Share Ownership Agreement

A South African law-governed agreement that establishes shareholders' rights, obligations, and relationships within a company.

find out more

Share Cancellation Agreement

A South African law-governed agreement documenting the terms and process for cancelling shares in a company's share capital, ensuring compliance with local corporate and securities laws.

find out more

Share Buyout Agreement

A South African law-governed agreement detailing terms and conditions for a company's purchase of its own shares from existing shareholders.

find out more

Preliminary Share Purchase Agreement

A preliminary agreement framework for share acquisitions under South African law, setting out key terms and conditions while allowing for due diligence and detailed negotiations.

find out more

Share Issue Agreement

A South African law-governed agreement documenting the terms and conditions for issuing new shares in a company to specified subscribers.

find out more

Share For Share Exchange Agreement

A South African law-governed agreement facilitating the exchange of shares between companies, structured to comply with Companies Act and tax legislation requirements.

find out more

Share Contribution Agreement

A South African law-governed agreement documenting the contribution of shares from one party to another, typically used in corporate restructuring or investment transactions.

find out more

Share Buyback Agreement

A South African law-governed agreement detailing terms and conditions for a company's repurchase of its own shares from existing shareholders.

find out more

Stock Transfer Contract

A South African law-governed agreement facilitating the transfer of shares between parties, ensuring compliance with local company law and regulatory requirements.

find out more

Restricted Stock Agreement

A South African law-governed agreement for issuing restricted company shares to employees, subject to vesting conditions and transfer restrictions.

find out more

Share Exchange Agreement

A South African law-governed agreement facilitating the exchange of shares between companies, detailing exchange terms, warranties, and completion requirements.

find out more

Share Swap Agreement

A South African law-governed agreement facilitating the exchange of shares between parties, including exchange terms and regulatory compliance requirements.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

³Ò±ð²Ô¾±±ð’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ³Ò±ð²Ô¾±±ð’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.