As Kenya’s business landscape grows, buying or selling company shares has become common, making Share Purchase Agreements (SPAs) essential for outlining terms and safeguarding both parties. At TLA (Thomas Louis Advocates), we specialize in Company and Corporate Law, ensuring share transactions are handled smoothly, securely, and in full legal compliance.
Purpose of a Share Purchase Agreement in Kenya
The primary purpose of an SPA is to formalize the terms of the share transfer. It provides a comprehensive detail of the sale, detailing the purchase price, payment terms, and any representations or warranties made by the seller. By clearly defining these terms, the SPA minimizes the risk of disputes and ensures that the transaction proceeds smoothly.
Key Components of a Share Purchase Agreement in Kenya
- Purchase Price – Amount to be paid for the shares, with possible adjustments.
- Payment Terms – How and when payment will be made (e.g., installments, escrow).
- Representations & Warranties – Seller’s statements on the company’s financial, legal, and operational status.
- Covenants – Seller’s promises or restrictions before and after the sale.
- Conditions Precedent – Requirements to complete the sale, such as approvals or due diligence.
- Indemnification – Protection for the buyer if the seller breaches the agreement.
Why Choose TLA (Thomas Louis Advocates )
In a dynamic investment environment, ensuring that your Share Purchase Agreement is meticulously crafted is crucial.At TLA (Thomas Louis Advocates ) , we leverage our expertise to draft and negotiate agreements that align with your objectives and protect your interests. Our commitment to excellence and precision ensures that your transactions are executed efficiently and effectively.