What happens when a company enters into a sales agreement

Author
Kruger Attorneys & Conveyancers Inc
Kruger Attorneys & Conveyancers Inc is a specialised conveyancing practice, providing incomparable property law services through practical wisdom and trusted advice.

When a Company enters into an Offer to purchase , the representative thereof, usually a Director, needs to be authorised by way of resolution to enter into the agreement prior to the signing of the agreement.

Alternatively, the representative can enter into the agreement but the Company will need to pass a resolution ratifying its acceptance of the sale agreement.

If a company is selling a property it is imperative to determine whether the property is a major asset of the Company. If this is the case, the Shareholders of the company need to also consent to the sale of the property.

(Article by by Nathan van Zyl from Kruger Attorneys & Conveyancers Inc)