Asset for Share Agreement Pack
- Asset for Share Agreement - R 1450.00
- Memorandum of Understanding (MOU) - Free
- Cession of Claims - R 450.00
- Instrument of Transfer - Free
- Share Certificate - Free
An Asset For Share Agreement is an Agreement where a Party (the "Transferor") agrees to exchange an Asset for shares in a Company (the "Transferee") without triggering various tax events. With this Asset for Share Agreement, provision is made to exchange either shares held in a company for shares in the Transferee or to exchange immovable property for shares in the Transferee.
Generally, an MOU is a non-binding agreement between parties in which the parties record certain facts and discussion surrounding a proposed binding agreement that they wish to enter into.
MOUs are often combined with non-disclosure agreements (which are binding on the Parties) and also sometimes contain non-solicitation of key individual provisions (which are also binding on the Parties).
The MOU is also sometimes referred to in practice as a “Term Sheet” or a “Recordal”, and usually contain key principles that must be mirrored in the definitive agreement and a recordal of certain actions to be taken by the applicable parties to the MOU.
If a person (the “Debtor”) owes you (the “Cedent”) money, you have a personal right to claim the money from that person. This personal right to claim the money that is due to you can be “transferred” to another person (the “Cessionary”). The transfer of the personal right to claim the money from the Debtor takes place by way of cession. Once the cession has taken place, the Cessionary becomes the “owner” of the personal right and will be in the position to claim the money from the Debtor.
You can create multiple instruments of transfer. An instrument of Transfer is a form required in terms of Section 51(6)(a) of the Companies Act, 2008, when securities (for example Shares) in a Company is transferred from one party to another. The Instrument of Transfer usually forms part of the Delivery Documents required to convey ownership in the securities and is used by the Company in which the securities are held to update the securities register.
You can generate multiple share certificates. A Share Certificate evidences your shareholding in a Company.