Selling shares to a Jersey private equity fund—what warranties can I refuse without risking the deal?

Good evening

As a shareholder who does not control records or may not be involved in the management of your company, you can push back on the warranties to limit them to those that you can give, for example that you own the shares, you have created any encumbrances or charges over them.  If there are other minority shareholders, you can coordinate together.  I have acted on deals selling big businesss to private equity an other firms and there is usually leeway.  If there is no scope, then the other shareholders (the management team) can be asked to indemnify you, for matters beyond your knowledge.  They are usually willing to do this to get the deal done.

I am happy to help and can provide

contact details.  Best wishes, Andrew Pinel, Pinel Advocates

 

Good evening

As a shareholder who does not control records or may not be involved in the management of your company, you can push back on the warranties to limit them to those that you can give, for example that you own the shares, you have created any encumbrances or charges over them. If there are other minority shareholders, you can coordinate together. I have acted on deals selling big businesss to private equity an other firms and there is usually leeway. If there is no scope, then the other shareholders (the management team) can be asked to indemnify you, for matters beyond your knowledge. They are usually willing to do this to get the deal done.

I am happy to help and can provide

contact details. Best wishes, Andrew Pinel, Pinel Advocates