The Differences Between A Business Sale And A Share Sale

The Differences Between A Business Sale And A Share Sale

Whenever someone is discussing buying or selling a business, the term ‘business sale’ will often be used, but in truth, it is often used wrongly. Commercial law defines a business sale as a specific legal process, and often the transaction taking place is not a business sale but a share sale.

A business sale and a share sale are two distinct types of transaction, and each has several legal differences in commercial law, even though once the sale takes place, it has the same outcome. To clarify what this means in practical terms, here are some of the differences between business sales and share sales

Share Sales

The legal owner of a business is the company and whilst that business ownership does not change, with the buying and selling of shares the ownership of the company can change. In certain states, there are advantages to share sales such as no transfer duties to be paid. There are also administrative benefits such as there being no need for new bank accounts to be opened and contracts with employees and suppliers remain in place.

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Injunctions – What They Are And Why They Are Granted

Injunctions - What They Are And Why They Are Granted

Injunctions are a legal order that most people are unlikely to ever encounter, but if they are served with one, they need legal help as soon as possible. Injunctions can happen within several scenarios but most commonly they will be used within commercial law between two companies, a company against an individual, or an individual against a company.

Injunctions are orders issued by a court that prohibits or commands a specific action, and the objective of that is to prevent another party from suffering harm. One of the most common reasons that an injunction will be sought is to maintain a certain set of circumstances or status quo. An example will be during a dispute between two parties and one of them requests an injunction to prevent the other party from changing, selling, and removing something.

Types Of Injunction

There are essentially four different types of injunction that could be ordered by a court.

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