5.4 Each contracting party heres all the necessary powers and authorizations to enter into this share transfer agreement. A transfer agreement is required when a person or organization wishes to sell, buy or transfer its shares to another person. On the basis of the principle of equality, mutual benefit and the same price by friendly consultation, on the question of the transfer of 13% of the shares of Zhejiang Hongzhan New Materials Co., Ltd. (hereafter referred to as « company »), held by Part A to Part B, the parties agree as follows: However, if a dispute arises in the future, the agreement is practical proof to use it as evidence. PandaTip: When the transferred shares are sold, the « transferor » means the seller and the « seller » the buyer. PandaTip: Sometimes pay a fee for the transfer of shares and the issuance of new shares, it is probably less than 50 USD, but you can first check. If you want these costs to be borne by the transferor or shared between the two parties, you can change the clause above. 4. RESULTS OF THE FORMALITÉ IT is agreed that if the planned transfer of shares will not be effective due to a lack of formalities (including, but not only the incorrect registration of the transfer in the company`s registers or following a refusal by the directors of the company whose shares are transferred), the transfer of all economic shares of the shares by the creation of a trust in favour of the beneficiary in which the shares form the subject, and the assignor is the agent.
Thanks to the share transfer agreement, the nature of the transaction becomes very transparent, not only for both parties, but also for any foreigner. It also avoids confusion between them, as both parties obtain clarification of the rights they hold. 3. COST OF TRANSFER It is agreed that the registration fee for the transfer of the shares (if any) will be borne by the purchaser. After filling out this form, the ceder should go wild. If one of the parties is a business, the company can put its common seal on the document on the document, and either two directors or a director and a secretary should sign the document. In the absence of a common seal, this document can be signed, sealed and delivered either by two directors or by a director and a secretary. In addition, the Company is not required to include in a registration statement made pursuant to this section 1.02 all shares of Registrable Common Stock subject to an effective and up-to-date registration statement under the share transfer agreement. If the parties do not sign a share transfer agreement and later become in conflict, the situation becomes difficult to manage. This can lead to serious and tedious legal complexity.
It describes the information provided by the party selling or transferring its shares to another (the assignor), the amount of shares to be transferred, the cost or value of each share, the company whose shares are transferred, etc. 5.12 This share transfer agreement can be executed in more than one language, in a common agreement between the parties, and in the event of a conflict between the various translations of this share transfer agreement. , then the English version applies. It can be avoided by the provision of a « refusal clause » in the agreement itself. This « refusal clause » means that existing shareholders have the right to acquire the shares before they are sold to outsiders who can protect their interests.