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Sale of Member’s Interest Agreement – in part, to a non-member

Sale of Member’s Interest Agreement – in part, to a non-member

stars Over 10,000 Happy South African Businesses

Original price was: R 1 681,34.Current price is: R 1 176,94.

Legal agreement for partial sale of membership interest to a non-member.

  • Offers a path to diversification.
  • Brings in outside capital.
  • Can facilitate company growth.
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Once your order is complete, you will be granted download permission for the document. You will:

  • See download links on the order received page after you have checked out.
  • Receive an email notification which will include download links.
  • Have access to your downloads via the Downloads tab on your ‘My Account’ page when logged in to your account on this website.
What format do you provide the document in?

You’ll receive the document in Microsoft Word. A small number of our documents are only available in PDF, in which case this is stated in the document summary.

What if I don't receive the link?

The two most common reasons for people not receiving the link are : (i) The e-mail address entered into the order form was incorrect; or (ii) the e-mail was directed into your spam folder. First please check your spam folder. If it is not there, contact us.

How can I tell if the document is suitable for my requirements?

Each document is accompanied by a description. Read the description to see if it will meet your requirements. If you are still uncertain, you can Contact Us with a brief overview of what you need the document for and we will respond as soon as possible.

Can I make changes to the contracts and legal documents?

Our documents are provided in MS Word format, allowing you to adjust and alter the agreement as you require. If you do not have legal experience we do caution you to be circumspect about the extent of the changes that you make.

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SALE OF MEMBERS INTEREST AGREEMENT

In part, to a non-member

Summary A Sale of Members’ Interest Agreement may be used when a Member sells some (but not all) of the interest that they own in a Close Corporation to a purchaser, where the purchaser is not an existing member of the Close Corporation. Ie. after the sale of member’s interest, the seller will remain a member in the business.

A comprehensive Sale of Members’ Interest Agreement includes reference to due diligence and warranties, amongst other detailed provisions. The Agreement caters for more than one member selling a portion of their member’s interest, if applicable.

Why do I need a Sale of Members’ Interest Agreement? A written Sale of Members’ Interest Contract sets out the terms of sale of an owner’s equity in a Close Corporation to another person. A number of issues need to be negotiated during a Close Corporation’s sale of equity, such as the purchase price, the due diligence process, confidentiality and warranties. These issues need to be included in the terms of the Sale of Members’ Interest contract 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 template member’s interest sale agreement consists of: Parties; Definitions; Sale of member’s interest; Suspensive Conditions; Purchase price and payment; Delivery of documents; Due diligence; Warranties; Indemnities; Restraints; 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 contract look like? This sample agreement can be printed onto thirteen pages.

What do you need to do to use the agreement?

  • Read the document 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 17 (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 look at reviewing their Members’ Agreement.

Also viewed:

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.

How do I receive my documents once I have paid for them?

Once your order is complete, you will be granted download permission for the document. You will:

  • See download links on the order received page after you have checked out.
  • Receive an email notification which will include download links.
  • Have access to your downloads via the Downloads tab on your ‘My Account’ page when logged in to your account on this website.
What format do you provide the document in?

You’ll receive the document in Microsoft Word. A small number of our documents are only available in PDF, in which case this is stated in the document summary.

What if I don't receive the link?

The two most common reasons for people not receiving the link are : (i) The e-mail address entered into the order form was incorrect; or (ii) the e-mail was directed into your spam folder. First please check your spam folder. If it is not there, contact us.

How can I tell if the document is suitable for my requirements?

Each document is accompanied by a description. Read the description to see if it will meet your requirements. If you are still uncertain, you can Contact Us with a brief overview of what you need the document for and we will respond as soon as possible.

Can I make changes to the contracts and legal documents?

Our documents are provided in MS Word format, allowing you to adjust and alter the agreement as you require. If you do not have legal experience we do caution you to be circumspect about the extent of the changes that you make.

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SALE OF MEMBERS INTEREST AGREEMENT

In part, to a non-member

Summary A Sale of Members’ Interest Agreement may be used when a Member sells some (but not all) of the interest that they own in a Close Corporation to a purchaser, where the purchaser is not an existing member of the Close Corporation. Ie. after the sale of member’s interest, the seller will remain a member in the business.

A comprehensive Sale of Members’ Interest Agreement includes reference to due diligence and warranties, amongst other detailed provisions. The Agreement caters for more than one member selling a portion of their member’s interest, if applicable.

Why do I need a Sale of Members’ Interest Agreement? A written Sale of Members’ Interest Contract sets out the terms of sale of an owner’s equity in a Close Corporation to another person. A number of issues need to be negotiated during a Close Corporation’s sale of equity, such as the purchase price, the due diligence process, confidentiality and warranties. These issues need to be included in the terms of the Sale of Members’ Interest contract 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 template member’s interest sale agreement consists of: Parties; Definitions; Sale of member’s interest; Suspensive Conditions; Purchase price and payment; Delivery of documents; Due diligence; Warranties; Indemnities; Restraints; 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 contract look like? This sample agreement can be printed onto thirteen pages.

What do you need to do to use the agreement?

  • Read the document 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 17 (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 look at reviewing their Members’ Agreement.

Also viewed:

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.