When buying the shares of a business the buyer takes the seller’s place as a shareholder or director. The company’s workers, contracts, assets, and so on will stay undisturbed. In this case it is important to have an agreement that sets out the duties and obligations of both buyer and seller.
When drawing up a share purchase agreement the parties should try to cover any potential problems after completion and clearly state what will happen if they arise. It should spell out the remedies for any breaches of these warranties.
It is wise to have this agreement properly prepared by someone with the required experience, expertise, and indemnities.