The acquisition of shares is the acquisition of a company`s operating activities. None of the existing contracts with the company change. When a shareholder sells its shares in a company, it achieves a complete break in the relationship between it and the target business. However, the buyer will insist on a number of contractual commitments concerning the company (guarantees) that will bind the shareholder after the sale. As a general rule, non-competition restrictions and prohibitions are not applicable if they go beyond what is necessary to protect the value of the shares sold. The most important considerations are the type of behaviour, which is reluctant, the duration of the deduction and the geographic scope of the restriction (i.e. where and the size of the area in which the restriction obligation applies). Shares (or shares) are shares of a company divided among shareholders (also known as shareholders). Even if the guarantees are beneficial, the party that gives them must be able to stick to them. If a buyer acquires shares, all the guarantees given by the seller are given by him personally.
Restrictive agreements prevent the seller from competing with the buyer for a limited period after the sale has been completed. They may include: The signing of a share purchase agreement is usually preceded by a legal review or “due diligence”, i.e. the legal, accounting, financial and technical verification of the current situation of the business by the purchaser. Companies that offer several types of shares sometimes also have a series (Class A, Class B, Class C, etc.) that may be worth different amounts of money. For example, 100 Class A common shares may not be of the same value as 100 Class B shares. After the stock seller concludes, the seller is not responsible for the company`s debts, which are the responsibility of the new owners. A company has its own legal personality on the part of its boards of directors and shareholders. In comparison, when selling assets, with a few exceptions (for example. B employees), the seller retains all of the company`s current liabilities, unless he can negotiate with the buyer to take care of them with the company.