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Deed Of Assignment Of Shares Of Stock for Nigeria

Deed Of Assignment Of Shares Of Stock Template for Nigeria

A Deed of Assignment of Shares of Stock in Nigeria is a formal legal document that facilitates the transfer of ownership of shares from one party (the Assignor) to another (the Assignee). This document, governed by Nigerian law, particularly the Companies and Allied Matters Act (CAMA) 2020, serves as conclusive evidence of the share transfer and must comply with specific requirements set by the Corporate Affairs Commission. The deed includes detailed information about the shares being transferred, warranties from the transferor, consideration for the transfer, and completion requirements, making it a crucial document for corporate transactions in Nigeria.

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What is a Deed Of Assignment Of Shares Of Stock?

A Deed Of Assignment Of Shares Of Stock is a fundamental legal instrument used in Nigerian corporate transactions to transfer share ownership between parties. This document is essential when shareholders wish to sell, transfer, or assign their shareholding to other parties, whether in private transactions or as part of larger corporate restructuring. The deed must comply with the Companies and Allied Matters Act (CAMA) 2020 and other relevant Nigerian legislation, including requirements for proper execution, stamping, and registration with the Corporate Affairs Commission. It typically includes detailed information about the parties, the shares being transferred, consideration, warranties, and completion requirements. This document is particularly important in Nigeria's business environment as it provides legal certainty and helps maintain proper corporate records of share ownership changes.

What sections should be included in a Deed Of Assignment Of Shares Of Stock?

1. Parties: Identification of the Assignor (transferor) and Assignee (transferee) with full legal names and addresses

2. Background: Recitals explaining the context of the share transfer, including details of the company whose shares are being transferred

3. Definitions: Definitions of key terms used throughout the deed

4. Agreement to Assign: Core provision stating the agreement to transfer the shares

5. Consideration: Details of the payment or other consideration for the share transfer

6. Completion: Specifics about when and how the transfer will be completed

7. Assignor's Warranties: Warranties regarding ownership, right to transfer, and status of shares

8. Further Assurance: Commitment to execute additional documents if needed

9. Notices: Process for sending formal notices between parties

10. Governing Law: Specification of Nigerian law as governing law

11. Execution: Formal execution block meeting deed requirements

What sections are optional to include in a Deed Of Assignment Of Shares Of Stock?

1. Regulatory Compliance: Required when the transfer needs specific regulatory approvals

2. Tax Indemnity: Used when specific tax arrangements or indemnities are needed

3. Non-Competition: Included when the transferor needs to be restricted from competing

4. Confidentiality: Added when specific confidentiality provisions are required

5. Power of Attorney: Included when one party needs authority to execute documents on behalf of another

6. Pre-emption Rights Waiver: Required when other shareholders have waived their pre-emption rights

7. Director's Resignation: Used when the transferor is also resigning as a director

What schedules should be included in a Deed Of Assignment Of Shares Of Stock?

1. Schedule 1 - Share Details: Detailed description of shares being transferred, including class, number, and distinctive numbers

2. Schedule 2 - Company Details: Full details of the company whose shares are being transferred

3. Schedule 3 - Completion Requirements: List of documents to be delivered and actions to be taken at completion

4. Schedule 4 - Warranties: Detailed warranties given by the transferor

5. Appendix A - Board Resolution: Copy of board resolution approving the transfer

6. Appendix B - Share Certificate: Copy of existing share certificate(s)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Nigeria

Publisher

Genie AI

Cost

Free to use

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