Corporate Law
Legal Support for Exiting a Business
Legal support was provided in connection with the client’s exit from a business, taking into account restrictions set out in the company’s constitutional documents, the partner’s proposals and the tax consequences of transferring an interest before the expiry of the minimum holding period.
Solution
Key legal and tax risks and the appropriate course of action were identified. Negotiations were conducted with the partner regarding the terms of the transfer of the interest in the charter capital. An option agreement for the conclusion of an interest sale and purchase agreement was prepared, providing for a condition precedent tied to the full payment of the purchase price. The closing of the transaction was assisted from a legal standpoint.
Result
As a result, the client received the necessary legal support and a document reflecting a balance of the parties' interests, with potential risks and conflicts mitigated.