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Sale of Member’s Interest Agreement – in total, to an existing member

Sale of Member’s Interest Agreement – in total, to an existing member

stars Over 10,000 Happy South African Businesses

Original price was: R 1 468,21.Current price is: R 1 027,75.

Legal agreement for a member to sell all membership interest to existing member.

  • Increases existing member’s stake.
  • Can strengthen existing member’s position.
  • Provides a clear exit option.
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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 MEMBER’S INTEREST AGREEMENT

In total, to an existing member

Summary A Sale of Member’s Interest Agreement may be used when a member sells all the Member’s Interest that they own in a Close Corporation to an existing member of the Close Corporation. A Sale of Members Interest contract includes reference to confidentiality and restraints, amongst other detailed provisions. The Agreement caters for more than one Member selling their Member’s Interest, if applicable.

Why do I need an agreement to sell Members Interest? A written agreement for the sale of member’s interest in a CC sets out the terms of the sale of a member’s equity to an existing member in the Close Corporation. A number of issues need to be negotiated during a Close Corporation’s sale of equity, such as the purchase price, the handover process, confidentiality, and restraints. These issues need to be included in the written contract for the sale of Members Interest to eliminate uncertainty and ensure that both sellers and the purchaser understand their respective rights and obligations during the sale.

What does the agreement say? The template sale agreement consists of: Parties; Definitions; Sale of Member’s Interest; Suspensive Conditions; Purchase price and payment; Delivery of documents; Warranties; Indemnities; Breach; Restraint of Trade; 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? The sample agreement can be printed onto ten pages.

What do you need to do to use the agreement?

  • Read the sample agreement template to ensure that it suits your requirements, and make changes as required. The Agreement can be used for one or more members selling Members Interest, in which event clause 1 (Parties), clause 16 (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 remaining members may also need to review their Members’ Agreement.

Also viewed:

The benefits and Use of a Sale of Members interest agreement:

A sale of members interest agreement is a legally binding agreement that outlines the sale of a membership interests from one member to another in a close corporation. This very detailed agreement includes clauses related to the purchase price, relevant confidentiality arrangements, and resolving of any dispute . Some important elements of this agreement are:

  • Member interest: Refers to the ownership interest in the underlying business of the close corporation.
  • Purchase price: The amount of money that the existing member agrees to sell their member interest in the underlying business for.
  • Confidentiality arrangements: to ensure a very detailed agreement this agreement includes clauses such as relevant confidentiality agreements to protect each member’s interest, unilaterally applicable confidentiality undertaking, any necessary individual confidentiality undertaking and necessary confidentiality document(s) to ensure the confidentiality of the sale which are added onto the latter legal documents.
  • Dispute resolution: The process to resolve any disputes that may arise during the sale agreement.
  • Notes and Notices: Very detailed drafting notes assist and are necessary to ensure that the agreement covers all relevant legal paperwork and the detailed drafting notes assist in necessary confidentiality undertakings. We ensure that all of our agreements have extensive drafting notes for each agreement relating to clauses such as confidentiality, and several drafting notes relating to other such clauses.
  • Legally substantive: The agreement is very detailed and legally binding to ensure that both parties are protected.
  • Purchase: Claims Purchase consideration/ claims agreement that the existing member receives in exchange for their membership interest.

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 total to an existing member 1
This item: Sale of Member's Interest Agreement - in total, to an existing member
Original price was: R 1 468,21.Current price is: R 1 027,75.
Original price was: R 1 468,21.Current price is: R 1 027,75.
Sale of Members Interest Agreement in part to a non member 2
Original price was: R 1 681,34.Current price is: R 1 176,94.
MOI Short Standard Form for Private Companies 2
R 0,00
Notice of Incorporation Form CoR14 1
R 0,00
Sale of Shares Agreement in part to an existing shareholder 2
Original price was: R 1 373,49.Current price is: R 961,44.
Shareholders Agreement 3 or more Shareholders Long Form MOI 3
Original price was: R 1 918,15.Current price is: R 1 342,71.

SALE OF MEMBER’S INTEREST AGREEMENT

In total, to an existing member

Summary A Sale of Member’s Interest Agreement may be used when a member sells all the Member’s Interest that they own in a Close Corporation to an existing member of the Close Corporation. A Sale of Members Interest contract includes reference to confidentiality and restraints, amongst other detailed provisions. The Agreement caters for more than one Member selling their Member’s Interest, if applicable.

Why do I need an agreement to sell Members Interest? A written agreement for the sale of member’s interest in a CC sets out the terms of the sale of a member’s equity to an existing member in the Close Corporation. A number of issues need to be negotiated during a Close Corporation’s sale of equity, such as the purchase price, the handover process, confidentiality, and restraints. These issues need to be included in the written contract for the sale of Members Interest to eliminate uncertainty and ensure that both sellers and the purchaser understand their respective rights and obligations during the sale.

What does the agreement say? The template sale agreement consists of: Parties; Definitions; Sale of Member’s Interest; Suspensive Conditions; Purchase price and payment; Delivery of documents; Warranties; Indemnities; Breach; Restraint of Trade; 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? The sample agreement can be printed onto ten pages.

What do you need to do to use the agreement?

  • Read the sample agreement template to ensure that it suits your requirements, and make changes as required. The Agreement can be used for one or more members selling Members Interest, in which event clause 1 (Parties), clause 16 (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 remaining members may also need to review their Members’ Agreement.

Also viewed:

The benefits and Use of a Sale of Members interest agreement:

A sale of members interest agreement is a legally binding agreement that outlines the sale of a membership interests from one member to another in a close corporation. This very detailed agreement includes clauses related to the purchase price, relevant confidentiality arrangements, and resolving of any dispute . Some important elements of this agreement are:

  • Member interest: Refers to the ownership interest in the underlying business of the close corporation.
  • Purchase price: The amount of money that the existing member agrees to sell their member interest in the underlying business for.
  • Confidentiality arrangements: to ensure a very detailed agreement this agreement includes clauses such as relevant confidentiality agreements to protect each member’s interest, unilaterally applicable confidentiality undertaking, any necessary individual confidentiality undertaking and necessary confidentiality document(s) to ensure the confidentiality of the sale which are added onto the latter legal documents.
  • Dispute resolution: The process to resolve any disputes that may arise during the sale agreement.
  • Notes and Notices: Very detailed drafting notes assist and are necessary to ensure that the agreement covers all relevant legal paperwork and the detailed drafting notes assist in necessary confidentiality undertakings. We ensure that all of our agreements have extensive drafting notes for each agreement relating to clauses such as confidentiality, and several drafting notes relating to other such clauses.
  • Legally substantive: The agreement is very detailed and legally binding to ensure that both parties are protected.
  • Purchase: Claims Purchase consideration/ claims agreement that the existing member receives in exchange for their membership interest.

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.