Five Reasons to Have a Stock Transfer Agreement Reviewed by an Attorney

On December 29, 2019, in Corporate, by John A. Weber IV, ESQ.

The corporate stock transfer agreement is a legal medium to help you lawfully sell or transfer your shares of an organization to someone else. The purpose of this document is to ensure clarity about details between you and the other party involved in the deal.

The corporate stock transfer agreement is also known as the Share Purchase Agreement (SPA) or the Stock Purchase Agreement. The list of details this agreement contains includes, but is not limited to, the following points:

  • The buyer and seller of shares.
  • The organization the shares are being transferred from.
  • The kind of shares.
  • All payment terms.

What is the role of an attorney in this agreement?

The role of an experienced business attorney is important. It is because an attorney has the knowledge to make sure everything is clear and correct in the agreement.  An attorney will also properly advise you on the implications of certain clauses contained in the agreement, as well as whether you should be consulting with other professionals such as a Certified Public Accountant (CPA).

Reasons to seek help from a business attorney:

You need help from a business attorney for a number of reasons. For example:

  • They have experience and knowledge of the law to help you negotiate terms and avoid pitfalls.
  • The luxury of a strong legal perspective is crucial.
  • Your level of risk is mitigated.
  • Both parties involved remain safe because an independent review of the stock transfer agreement is prepared.
  • Insight to avoid future litigation and expenses.

The role of an attorney is very important in the preparation of a Stock Transfer Agreements. An experienced attorney knows all the legalities and the do’s and don’ts involved in the lawful preparation of Stock Transfer Agreements. They legally safeguard the financial and business interest of both the parties involved in the agreement.

If you are looking for someone who can assist you on this front, the Law Firm of Vaughn, Weber, Prakope, PLLC, a group of experienced business attorneys, are just a call away. Call us at 516-858-2620.

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Buying and Selling a Small Business

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