Free Share Repurchase Agreement

A share repurchase agreement is specifically designed for a corporation buying back its own stock from a shareholder.

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More often than not, when a corporation is involved in the sale of its stock, it is in the capacity of a seller. However, the occasion may arise for the corporation to buy back some of its stock back from its shareholders. If a corporation decides to repurchase stock from shareholders, this transaction may be accomplished with a Share Repurchase Agreement.


Unlike a general share purchase agreement, the Share Repurchase Agreement is specifically for a stock purchase where the corporation is buying back its own stock from shareholders. This agreement seeks to protect both parties by clearly defining the terms and conditions for the transaction.

Frequently Asked Questions

 

 

A share repurchase agreement is a specifically designed contract for a corporation buying back its own stock from a shareholder. 

 

 

 

If you are a shareholder, there are several reasons why you may want to resell your stocks to the original corporation. You may believe the stock has reached its peak value. Or perhaps you just want to abandon your investment.

Whatever the reason, the share repurchase agreement will allow you to resell your stocks to the company if that is what you believe is the best course of action. 

For the company that issued the stock, the typical reason for repurchase is if the market value of the stock has decreased significantly. A share repurchase agreement allows the corporation to repurchase its stock so that it may increase the value of its shares before reselling.

 

To create your agreement, provide:

  • Effective Date: Select the date the agreement will be made effective.

  • Governing State: Choose which state’s laws will apply to the agreement.

  • Corporate Details: Give the name, state of formation and address of the corporation purchasing it’s shares.

  • Shareholder Approval: Indicate whether the transaction requires shareholder approval. Refer to the corporation’s governing documents and/or state law to determine whether the shareholders will need to approve of the transaction.

    • If shareholder approval is required, it will need to be obtained independently of this agreement.

  • Seller Details: Give the name, address, and signing representative of the seller.

  • Transaction Information: Enter the number of shares being sold, type of stock, and price per share.

  • Deposit Amount: Specify whether the corporation will make a deposit before purchasing the shares.

  • Closing Date: Select the date the repurchase of shares will be completed by.

  • Confidentiality Clause: If the seller will hold no equity in the corporation after the transaction, you may want to include confidentiality clauses. A standard confidentiality clause is a covenant not to divulge closely held information belonging to the corporation. Depending on the former shareholder’s role, you may want to prevent them from disclosing such information. You may also choose to include a non-solicitation clause, which prevents the seller from poaching the clients and employees of the corporation. 

  • Preparar Identity: Specify which party prepared the agreement.

Our propriety form generator will assist you in creating your customized Share Repurchase Agreement within minutes. Answering the questions is not complicated – you only fill in the requested information and we will put it together for you.

Once you complete the questionnaire and place your order, it will be available for immediate download in either PDF or Word document from your secure online account including a step-by-step guide on how to use your document.   

 

 

 

Generally, a share repurchase agreement does not need to be notarized – you only need to sign the document to make it legally enforceable. A witness may be helpful in the event the agreement is contested, but a notary is not necessary.

 

Please Note: The use of a notary ensures that no one challenges any signatures later and is a secure way to firmly establish the effectiveness of your document.