Note: This article is not specifically on US Law, but is for an internationally wide audience. For the US version relating to purely a US legal system, visit our article on stock purchase agreement . What is a Share Purchase Agreement A share purchase agreement (SPA) is a contract between the seller and buyer of shares in a company. It sets out the terms on which the seller is selling his shares and the buyer is buying the shares. This one is a pretty complicated contract, so you need to be aware of the basic elements required when drafting a contract . Getting it wrong can have some pretty negative effects for your business , so you better watch out! The share purchase agreement (SPA) will describe the shareholding in terms of percentage ownership. In other words, it will specify how many shares you are buying, at what price per share and what percentage of voting rights this gives you against all other shareholders in the company. A share purchase agreement is also used when a busine
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