The compensation clauses provided by the BSB also regulate restrictions and exceptions to the seller`s liability with respect to the buyer`s claims. A limitation of liability clause is the discharge clause that sets certain time and money limits in the event of a claim for compensation. Indian laws apply, and the city`s courts of the seller`s headquarters have jurisdiction. The usual and standard clauses should be provided, but emphasis should be placed on the transfer clauses and the relationship clause clearly stating that the agreement does not create or contemplate any particular form of relationship between the seller and the purchaser, unless the agreement provides for another point. No employer or senior representative relationship is considered created. Applications must be made to approved and issued share capital, including information on stock classes and the number of shares in each class, as well as on the names and addresses of all registered shareholders that indicate the number of shares held, whether favourable or not. The precedent clause should be comprehensive, which provides for all necessary authorizations, authorizations and authorizations, both inside and outside, and the person responsible for obtaining these authorizations should also be indicated. Normally, a clause relating to the right of the purchaser to waive a condition is also included in order to provide flexibility in the event that certain routine authorizations that do not affect a transaction do not come or do not take long to do so. The precedent clause should also provide for the performance of all insurance, guarantees, obligations, implementation of agreements and agreements concluded under the agreement. A shareholder has the prima facie right to transfer his shares whenever and to whomever he wants. However, this freedom can be considerably restricted by the provisions contained in the articles. Two common forms of restriction contained in private company articles are: (a) provisions that the board of directors should have general or limited authority to refuse the registration of transfers to the termination of the transfers; and (b) pre-purchase clauses that are provisions that require a member to first propose his actions to others, such as directors or other members.
Ideally, there should be no following conditions in a share purchase agreement, but this becomes necessary, though rarely. There are authorizations and commitments that are always re-remuary under the following conditions. However, the buyer should be protected in the event of a violation of one of the following conditions. This is primarily a repetition of the representation and guarantee clause, but it is included in the share purchase agreement to protect the interests of the parties. Some of these guarantees will disappear at closing, while others, such as the law and the holding of shares, will continue well beyond the conclusion. Apart from the question of why the shares are sold and possible prior sales efforts should be asked basic demands regarding the legal books and the organizational structure of the company. The final mechanics can be difficult, as the parties must agree on the dates, the place of completion, the actions and what needs to be provided after completion. The latter generally includes all the formalities after completion (i.e. relocation forms, share certificates, management authorizations and company legal books). Finally, we insert, for example, two models of clauses, which are generally included in the contract to buy and sell shares in the form of declarations and guarantees, as they are generally of great importance: the drafting of a share purchase contract depends on the party representing a lawyer.