Stamp duty is a tax on documents and is levied during a share transfer. The stamp tax regulations provide that stamp duty is levied on the sale or purchase of Hong Kong shares. The rate at which stamp duty is collected depends on the amount or value of the consideration. Are there reporting obligations or advice with employees or workers` representatives regarding the acquisition of shares in a company, business or asset? Are pensions and other benefits automatically transferred with the staff of a target company? Do applications for registration or consent have to be obtained from employees when a business or business is acquired? In the event of an acquisition of shares by an existing shareholder, the agreement of the other shareholders may be necessary to waive the pre-emption rights, Along day rights or other transfer restrictions that are normally provided either in the statutes of the target company or in the corresponding shareholder agreements. Are transactions generally closing conditions? Describe the usual completion conditions for a seller and all other conditions that a buyer wishes to include in the agreement. As a general rule, a seller will agree to operate the target transaction as part of the normal procedure, in accordance with current practice, and will generally agree to set prior agreements, including: a seller`s overall liability under a sales and sale contract is generally limited to an amount equal to or less than the purchase price. How are acquisitions and divestitures of private companies, companies or assets in your country structured? What can a typical transaction process involve and how long does it usually take? Hong Kong laws distinguish between the execution of simple contracts and the execution of deeds. Certain documents must be executed in the form of documents, including transfers of shares of real estate, mortgages and fees, proxies and contracts that are not backed by counterparties. Simple contracts require the signature of a duly qualified person to be effective.
Additional formalities must be followed for the execution of the acts. Failure to comply with the applicable enforcement procedures could lead to the invalidation and inapplicability of a document. 2. Putting in place the share transfer form signed by the assignor and the assignor The seller may also agree not to solicit competing proposals, to inform the buyer of unsolicited approaches regarding the target entity or target company, and of an auction procedure with effect from the conclusion and to attribute the benefit of confidentiality agreements with other potential buyers.