Use this contract: 

• If you are a company, business or association and wish to hire a director or senior manager.
• Whether or not the director is appointed to the board of directors or managers at the same time.
• Whether the contract is open-ended or fixed-term, full-time or part-time.
• Whether the salary is gross or net, annual or monthly, paid in 12 or 13 monthly instalments, or otherwise.
• When you want to include more benefits, obligations or restrictions than are provided for by law.

Protect yourself legally as an employer with the following options: 

• Restrictions on non-disclosure, non-solicitation, and non-competition, even after employment, with penalties. 
• Extensive monitoring measures, obligation to record working hours and submit to regular checks. 
• Clear definition of working hours and breaks, with a general obligation to work overtime, travel and take business trips. 

• Possibility of payment in lieu of dismissal leave, suspension from work as a disciplinary measure, and immediate termination for cause. 
• Duty of loyalty, diligence, and obligation to return equipment and tools in the same condition, with limits on coverage of expenses and use of equipment or vehicles. 

Offer the following protection and benefits to the director: 

• Bonuses and benefits of all kinds, including training funding, sales commission, performance-based and non-performance-based bonuses. 
• Longer holidays, extended redundancy leave, no trial period and seniority pay. 
• Salary net of any tax or social security contributions, 13th salary and shorter payment periods. 
• Flexible working hours, paid lunch break and home office policy. 
• Company car or card, parking space, equipment, tools, and other expenses covered, including lump-sum payments. 

Use this contract: 

• If you own shares in an English or Welsh limited company.
• To sell all or part of your shares in a company.
• Whether you are a managing partner or a passive minority shareholder.
• When the sale is between individuals or companies, of any residence or origin.
• When the price is to be paid in advance or afterwards, in a lump sum or by instalments.

Protect yourself legally as the seller with the following options: 

• Indication of approximate deadlines for formalising everything, with a certain delay to be tolerated and a grace period. 
• Limitation of guarantees for non-executive or minority partners. 
• Reservation of ownership of shares in the event of non-payment, and requirement for advance payment. 

• Stipulation of conditions precedent to closing, such as an independent audit to be satisfied by the seller. 
• Imposition of additional duties or restrictions on the purchaser, including the passing on of any tax on the transfer. 

Protect your interests while purchasing a company with the following terms: 

• Imposition of restrictions on the seller, including a prohibition on competition. 
• Seller’s guarantee of legal risks and possible right to be accepted and elected to the Board of Directors. 
• Flexible payment plan, with regular or irregular, equal or different instalments. 
• Clear allocation and capping of additional costs that may be charged on top of the price. 
• Obligation to specify statutory restrictions and other benefits on shares. 

A share purchase agreement template is a legal document signed between a seller and a buyer to outline the duties and rights, managing legal risks related to the transfer of company shares. With our SPA template, it’s possible to mitigate any financially-related risks and responsibilities for the vendor ensuring the secure payment of the purchase price.

Sellers use a stock purchase agreement:

• To conclude a sale of all or part of the stock of a UK limited company
• To assign the stock from a majority shareholder with a full guarantee, or from a minority shareholder with a limited guarantee.

To perform a definitive or a conditional sale, subject to additional duties, due diligence, and review of the financial situation of the company.

Key Aspects of Stock Purchase Agreement

• Our share purchase agreement example may be used both by a company or a registered business, as well as by individual shareholders.
• The document should clearly set out the description of the company, share capital, stock, liens, and restrictions on sale.
• The seller’s warranty is generally limited if he or she is a minority or non-managing shareholder.
• A buyer often pays the purchase price in instalments and follows successful due diligence.

Seven tips on Share Purchase Agreement

Our stock purchase contract protects the seller’s legal interests with the following options:

• Using a limited warranty option if you are not a manager or a minority shareholder with limited control over the company.
• Indicating a tolerated risk threshold beyond which the price shall not be adjusted, and the buyer cannot rescind the agreement.
• Requesting a down payment deposit even in case of a conditional sale, to secure the payment of all or part of the price.
• Additional duties and restrictions on the buyer (for example, no resale to competitors, non-dismissal of executives).

Our stock purchase agreement sample offers protection and benefits to the buyer as well. These might be:

• Flexible instalment plan for the payment of the price in multiple tranches.
• Prohibition for the seller to compete with the buyer and the company following the sale.
• Stipulation of preliminary conditions, such as successful audit and due diligence, failure of which grants the buyer the right to rescind the agreement.

Customizing Document Template for Your Needs

Whether a seller or a purchaser, it is simple to draft share purchase agreement in just a few minutes using AdminTech’s online document builder, and be confident about the legal protection you receive.

With AdminTech’s simple stock purchase agreement template, simply fill in the fields with the required information, and the document shall automatically adjust to your specific needs.

Create a Stock Purchase Contract with AdminTech

A professional sample share purchase agreement allows to cover the following information:

• Parties’ contact details and identification.
• Description of company, stock, capital, and liens.
• Due diligence, audit, warranties, and limitations.
• Purchase price and terms of payment.
• Restrictions and additional duties.

Stock Purchase Agreement Form FAQ

What documents are necessary for the sale of a company?

A share purchase agreement template from AdminTech provides sellers with an opportunity to create a professional document that can be used for selling a UK limited liability company. The share purchase agreement example is made by a lawyer and is governed by UK law in compliance with corporate regulations.

What is the seller’s liability in case of a share purchase agreement?

• Under the terms of stock purchase agreement, the seller is liable for the representations and warranties provided to the buyer, depending on the scope and content of such declarations.
• As a shareholder, it is generally the seller’s liability to pay up the unreleased share capital, although this responsibility may be passed to the buyer under a specific clause of the stock purchase agreement template.
• Using our shareholder purchase agreement, the parties may convene a full or limited warranty of the seller.
• Furthermore, the seller is expected to engage in negotiations in good faith and actively support the buyer in conducting due diligence by furnishing all requisite documents and information.

What is the buyer’s liability in a situation of a share purchase agreement?

• The main liability of the buyer is to pay the purchase price within set deadlines. Additional costs or taxes may be borne by the buyer in accordance with the terms of the share purchase agreement form.
• Additional restrictions and duties may be imposed on the buyer, such as non-liquidation of the company for a certain period.
• Particular attention should be paid to the respect of confidentiality and non-disclosure of the company’s financial situation obtained in the course of negotiations, whether the deal is closed or cancelled.

Should a share purchase agreement be in written form?

A stock purchase contract must be done in written form, but should not necessarily be notarised.

In practice, the following additional documents are often prepared by the parties:

• Letter of intent before entering into negotiations, without binding effect
• Non-disclosure agreement to secure the confidentiality of any additional information
• Auditor’s report or due diligence statement outlining the accuracy of the company’s financial information.
• List of clients, employees, partners and suppliers of the company.
• List of assets, patents, know-how and other important attributes of the company.

Can a share purchase be done in foreign currency?

The price may be expressed freely in any currency that the parties deem reasonable. However, most transactions on the UK company is, in practice, carried out in British pounds.

In our share purchase agreement template you can select the currency of your choice.

How can sellers ensure a successful share purchase experience?

To ensure a successful selling experience, it’s generally advisable to:

• Comply with corporate law provisions of the UK law.
• Describe the company in detail and attach all necessary documentation.
• Determine any preliminary conditions and eventual additional duties and restrictions.
• Create and sign a detailed sample share purchase agreement.

Include standard terms as offered in our sample.