Over 2,600 Happy South African Businesses
Sale of Member’s Interest Agreement – in part, to an existing member
Our Clients & Partners
Trusted By 2,600+ Businesses
Legal Templates For All Industries
Backed By Legal Research
Sale of Member’s Interest Agreement – in part, to an existing member
Over 2,600 Happy South African Businesses
R 638,00
Legal agreement for partial sale of membership interest to an existing member.
- Can strengthen existing member’s position.
- Helps establish fair market value.
- Reduces the risk of outside investment.
CONTRACT TO SELL MEMBERS INTEREST
In part, to an existing member
Summary A contract to sell members interest is useful when a business owner sells some of their Member’s Interest in a Close Corporation to a purchaser, where the buyer is already an existing member of the Close Corporation. This Sale of Member’s Interest Agreement includes reference to the purchase price and confidentiality, amongst other provisions. The Agreement caters for more than one member selling portion of their Member’s Interest, if applicable.
Why do I need a contract to sell member’s interest? A written agreement for the sale of member’s interest in a CC sets out the terms of the sale of the member’s equity to another member. A number of issues need to be negotiated during a Close Corporation’s sale of equity, such as the purchase price, confidentiality and warranties. These issues need to be included in a written contract governing the Sale of Member’s Interest to eliminate uncertainty and ensure that both the sellers and the purchaser understand their respective rights and obligations during the sale.
What does the agreement say? The sample sale of interest agreement consists of: Parties; Definitions; Sale of Member’s Interest; Purchase price and payment; Delivery of documents; Warranties; Indemnities; Breach; Confidentiality; Dispute Resolution; Pre-emptive rights; Notices; General.
Note: if the entity is a private company, you’ll need a Sale of Shares Agreement.
What does the Agreement look like? The template sale agreement can be printed onto eight pages.
What do you need to do to use the Agreement?
- Read the sample Sale of Member’s Interest contract to ensure that it suits your requirements, and make changes as required. The Agreement can be used for one or more members selling Member’s Interest, in which event clause 1 (Parties), clause 14 (Signatures) and Annexure 1 (Sale details) can be adjusted accordingly.
- Complete the relevant details, such as the details of the Seller/s and Purchaser, the name of the Close Corporation and the purchase price and terms in Annexure 1. Ensure that any blanks in the document have been completed.
- Ensure all the parties sign the agreement and receive a copy.
- The members should also consider reviewing their Members’ Agreement.
Also viewed:
- Sale of Member’s Interest Agreement – in total to an existing member
- Sale of Member’s Interest Agreement – in part to a non-member
- Sale of Member’s Interest Agreement – in total to a non-member
The Online Agreements Shop cc and its members, staff, legal advisers, partners and consultants, agents and any person associated therewith cannot be held liable for any loss or damage that is incurred or may be incurred by any person as a direct or indirect result of the use of this website or any document or information contained on or obtained from this website, nor as a result of anything that is contained in or left out of any document.
We Are Here To Simplify The Legal Side Of Your Business!
Skip The Guesswork, Avoid Time-Consuming Legal Hassle And Expensive Fees
When you need a legally binding agreement, there’s no need to spend hours drafting one from scratch. Our online agreement templates take the guesswork out of creating contracts, so you can protect your business while saving time and money on expensive legal consultancy.
Easily Customize Each Template To Suit Your Needs And Have It Completed In No Time
We understand that one size does not fit all when it comes to legal contracts. That’s why our agreement templates are available in Microsoft Word format, so they can be easily customized to suit your specific needs — add, remove, or replace any element with a few clicks.
Rest Assured Knowing That Your Agreement Was Drafted By Experienced South African Lawyers
Say goodbye to standard online agreements that have been drafted in foreign jurisdictions. Our templates are written by experienced South African Lawyers to rigorously comply with South African Law, so you can be confident that your document will meet all relevant legal requirements.
Browse Through Thousands Of Templates Written In An Easy-To-Understand Language
Whether you’re putting together a contract for a new business venture or setting up payment arrangements with a client, we’ve got something for every need. You won’t find any legal jargon here, just simple, straightforward templates to be easy to understand for anyone.
Our Customers Say It Best
‘Excellently written contracts that save my clients money!’
Adrian Hodgkinson Professional Accountant (SA)
‘OUR NR.1 Choice for Employment Contracts!’
JP Botha Managing Director, Conversion Advantage
‘Best site for professional supplier agreements’
Jason Bonthuys, Owner, Bulcan Engineering
‘Excellently written contracts that save my clients money!’
Adrian Hodgkinson Professional Accountant (SA)
‘OUR NR.1 Choice for Employment Contracts!’
JP Botha Managing Director, Conversion Advantage
‘Best site for professional supplier agreements’
Jason Bonthuys, Owner, Bulcan Engineering
Looking For Something Specific? Try Typing The Word Or Phrase You Want To Search For In This Field
We have 250+ agreement templates, and we are constantly expanding our collection. If you don’t see what you need, please contact us. We’d be happy to help you out!
Check Out Some Similar Agreements That Might Interest You
Business Agreements
Shareholders’ Agreement – 3 or more shareholders, Long Form MOI
Business Agreements
Commission Based Employment Contract South Africa – Probation Period Clause
Business Agreements
Sale of Member’s Interest Agreement – in part, to a non-member
Business Agreements
Sale of Members Interest Agreement – in total, to a non-member
Business Agreements
Monthly Salary Employment Contract with Probation Period South Africa