While the repurchased shares should normally be paid at the time of the transaction if the reason for the purchase is linked to an employee shareholding system, the payment can be deferred and paid in installments. This allows the company to manage cash flows more efficiently, otherwise it will not be aware of the employee`s intentions to leave in advance. There are strict legal requirements that must be met. If the business is a private company, the takeover can be financed by the following mode of use: Clause 4 (Guarantees) Guarantees are effectively contractual commitments according to which a given factual claim is true. Clause 4.1 means that the seller contractually agrees to enter into this contract without the agreement of another person and is the sole owner of the shares. In other words, the company sells its marketable securities, such as shares or bonds, to a shareholder. As part of the agreement, the group agrees to buy back the tradable securities at a later date. After the repurchase, the shares may be cancelled or held in the public treasury if they are acquired with distributable profits or cash, and must be cancelled if purchased with the proceeds of a new share issue or with capital. Clause 2 (shareholder authorization) This clause is an optional clause that requires shareholders` agreement on the share repurchase agreement in the form of an ordinary decision (shareholders who make a decision holding more than 50% of the capital of the voting company) and should be included if shareholders` agreement has not yet been obtained. If this is the case, the background note (D) should be deleted because it is not applied.

Our model contains the main conditions that govern the repurchase of shares, such as the name of the selling shareholders, the number and class of shares sold and the price to be paid for the shares. Note that it is possible for public and private companies to repurchase their shares, but our model has been established with a private company limited by shares. Clause 7 (fees and stamp duty) This clause provides that each party must bear its own costs (unless it is provided elsewhere in the agreement) and that stamp duty fees are paid by the company. This product is an easily adaptable share repurchase agreement, as well as a set of tailored guidelines that aim to properly complete the model and explain all important provisions so that you can implement a valid and legally binding agreement. You own a business and you want to buy back shares from a shareholder. A share repurchase agreement can help make this happen. Or maybe you own shares in a company and want to resell them. It is wise to outline the terms first.

If you receive a share repurchase agreement, you can move the process forward. Clause 4.2 implies that both parties promise each other that they will have the power and authority to conclude the agreement by the date of this agreement and that they will be able to execute and provide the agreements and documents in question.