Document background
The Simple Share Purchase Agreement is a fundamental legal document used in South African corporate transactions for the transfer of company shares from a seller to a purchaser. This document is particularly suitable for straightforward share transfers where the transaction structure is uncomplicated and the parties require standard protections. It complies with South African company law requirements, particularly the Companies Act 71 of 2008, and includes essential elements such as details of the shares being transferred, purchase price, payment terms, and basic warranties. The agreement is commonly used for private company transactions, small to medium-sized business sales, and internal restructuring where shares are being transferred between existing shareholders or to new investors. While simpler than complex M&A documentation, it still provides adequate protection for both parties while maintaining clarity and ease of use.
