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Stock Purchase Agreement
I need a stock purchase agreement for the acquisition of 100,000 shares in a private Dutch company, with provisions for a due diligence period, representations and warranties from the seller, and a closing date within 60 days. The agreement should also include a clause for potential adjustments based on the company's financial performance.
What is a Stock Purchase Agreement?
A Stock Purchase Agreement forms the legal backbone of buying or selling shares in a Dutch company. It spells out the exact terms of the share transfer, including the price per share, payment details, and any special conditions that need to be met before closing the deal.
Under Dutch corporate law (Burgerlijk Wetboek), these agreements protect both buyers and sellers by documenting crucial elements like warranties, representations, and post-closing obligations. They're especially important in private company transactions, where shares aren't traded on public markets like Euronext Amsterdam. The agreement also typically includes rules about board approval, non-competition clauses, and how to handle potential disputes.
When should you use a Stock Purchase Agreement?
Use a Stock Purchase Agreement when buying or selling shares in a Dutch private company, particularly for significant ownership changes or complex transactions. This agreement becomes essential during mergers and acquisitions, venture capital investments, or when transferring shares between business partners.
The agreement proves especially valuable when dealing with specialized terms like earn-out arrangements, staged payments, or specific performance guarantees. Dutch law requires clear documentation of share transfers, and having this agreement in place helps prevent future disputes about price, warranties, or transfer conditions. It's particularly important when dealing with foreign investors or when special voting rights or board seats are part of the deal.
What are the different types of Stock Purchase Agreement?
- Restricted Stock Purchase Agreement: Used for employee stock plans with vesting periods and transfer restrictions
- Share Sale And Purchase Agreement: Comprehensive version for major corporate transactions with detailed warranties
- Agreement To Sell Shares: Simplified format for straightforward share transfers between private parties
- Letter Of Offer To Purchase Shares: Initial proposal document that can evolve into a full purchase agreement
Who should typically use a Stock Purchase Agreement?
- Company Shareholders: Current owners selling their shares, from individual investors to major stakeholders in Dutch BVs or NVs
- Potential Buyers: Including private investors, venture capital firms, or other companies looking to acquire ownership stakes
- Corporate Lawyers: Draft and review agreements to ensure compliance with Dutch corporate law and protect client interests
- Board Members: Must approve share transfers and often negotiate key terms, especially in privately held companies
- Corporate Secretaries: Handle documentation, maintain shareholder registers, and ensure proper filing with the Dutch Chamber of Commerce
How do you write a Stock Purchase Agreement?
- Company Details: Gather accurate corporate information from the Dutch Chamber of Commerce (KVK), including registration numbers and share structure
- Share Information: Document the exact number, class, and current value of shares being transferred
- Party Information: Collect full legal names, addresses, and signing authority of all involved parties
- Purchase Terms: Define payment structure, timing, and any conditions for closing the deal
- Board Approval: Confirm necessary corporate approvals and any pre-emptive rights of existing shareholders
- Document Generation: Use our platform to create a legally compliant agreement that includes all mandatory Dutch legal requirements
What should be included in a Stock Purchase Agreement?
- Party Details: Full legal names and addresses of buyer, seller, and company under Dutch law
- Share Specifics: Precise description of shares, including class, nominal value, and share numbers
- Purchase Price: Clear payment terms, including timing and method of payment in accordance with Dutch financial regulations
- Warranties: Standard declarations about share ownership, company status, and financial condition
- Transfer Mechanics: Process for executing the transfer, including notarial requirements
- Governing Law: Explicit statement of Dutch law application and jurisdiction
- Signing Details: Date, place, and proper signature blocks for all parties
What's the difference between a Stock Purchase Agreement and an Asset Purchase Agreement?
A Stock Purchase Agreement differs significantly from an Asset Purchase Agreement in several key ways. While both are used in business transactions, they serve distinct purposes under Dutch law and require different approaches to drafting and implementation.
- Transaction Scope: Stock Purchase Agreements transfer company ownership through shares, while Asset Purchase Agreements deal with specific business assets, equipment, or property
- Liability Transfer: Share deals automatically transfer all company liabilities to the buyer, whereas asset deals allow buyers to select specific assets and exclude unwanted liabilities
- Legal Process: Share transfers require notarial deeds under Dutch law, while asset transfers often need individual registrations for each asset type
- Tax Implications: Share deals typically face different tax treatment than asset deals under Dutch tax law, particularly regarding transfer tax and VAT
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