Document background
The Transfer Of Shares Agreement is a crucial legal document used when transferring ownership of shares in a Canadian corporation from one party to another. It is essential for both private and public companies, though the requirements and complexity may vary. The agreement must comply with federal legislation such as the Canada Business Corporations Act and provincial securities laws, while also addressing tax implications under the Income Tax Act. This document is particularly important as it provides legal protection for both parties, ensures proper documentation of the transaction, and helps maintain clear corporate records. The agreement typically includes detailed information about the shares being transferred, purchase price, payment terms, representations and warranties, and closing conditions. It may also need to address regulatory approvals, especially for larger transactions or those involving foreign buyers.
