NOTICE OF CONDITIONAL INTENT TO PURCHASE SHARES
Summary A Conditional Intention to Purchase Shares may be considered when a shareholder sells shares in the Company and the purchaser wants to conduct a due diligence before progressing with the sale. The Conditional Intent sets out the material provisions pertaining to the sale, provides for due diligence consents, and lays the foundation for the terms of the Sale of Shares Agreement.
Why do I need a Notice of Conditional Intent to buy Shares? A prospective purchaser wanting to buy shares in a Company, but who first wants to complete a due diligence before the sale of shares is finalised, may consider using this Notice of Conditional Intention to buy shares. A Conditional Intent sets out the terms of the due diligence to be conducted on the Company before the sale of a shareholder’s shares may be completed, and also provides for the requisite company consents to the due diligence.
Is this intended for a Close Corporation? Then view our Notice of Conditional Intention to Purchase Member’s Interest.
What does the agreement say? The template notice consists of: Parties; Definitions; Intent to Purchase; Purchase price; Conditional Sale; Due Diligence; Confidentiality; Costs
What does the contract look like? The standard notice of intent can be printed onto eight pages.
What do you need to do to use the Notice of Conditional Intention to buy Shares?
- Read the sample document to ensure that it suits your requirements. Make changes as required.
- Complete the relevant details, such as the Seller and Purchaser’s names, the name of the Company and the purchase price. Complete the Annexures, including the credit consents, and attach the draft Sale of Shares Agreement.
- Ensure the parties sign the agreement and each receive a copy.
Also viewed: Shareholders Agreement
Also known as: Letter of intention to buy shares; Due diligence consents
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