One of the shareholders/directors/company secretary is selling out to another. This is an interesting agreement between the transferor and the transferee of shares in a pty ltd company. It includes an Instrument of Transfer but they wanted also to have agreements and clarification on important issues similar to the sale of a business as a going concern. It therefore includes, in addition to the instrument of transfer which is required under
to make the transfer legal, an agreement between the two shareholders/directors which includes details of the company, details of the trading name, details of the assets and liabilities of the company (the balance sheet at the moment of transfer and details) and declarations by the directors (and the auditor if one is normally required) plus the resignation of the outgoing director. Includes covenant in restraint of trade.
Agreement between the transferor and the transferee of shares in a pty ltd company.