NSW Private company share sale

[TTS]

My wife and I hold the only paid-up shares in our company. There is a potential buyer of the company who doesn't have sufficient funds to pay for the full value of the shares. Is it legal to sell the shares to him for a down payment, at which time the shares pass to him, with the balance owed being paid within an agreed time? Effectively vendor finance for the sale of the company shares?

 

[Rod]

Yes and yes.

You need an appropriate sale of business contract and reversion clauses.

 

[TTS]

Thanks Rod.

 

[Tim W]

Yes, but it's an unwise choice, unless you can 200% certain of being paid.