Share Purchase Agreement (Quebec)
Key facts
QuebecEnglish (QC)FreePDF & WordUpdated Jun 6, 2026Convention d'achat-vente d'actions — CCQ arts. 1708–1733 and LSAQ — Quebec
CONVENTION D'ACHAT-VENTE D'ACTIONS
Convention d'achat-vente d'actions — régie par les articles 1708 à 1733 du C.c.Q. et la Loi sur les sociétés par actions (RLRQ c S-31.1) — Québec
LA PRÉSENTE CONVENTION D'ACHAT-VENTE D'ACTIONS est conclue en date du [Agreement Date] entre :
VENDEUR : [Vendor Name], [Vendor Address] (le « Vendeur »)
ACHETEUR : [Purchaser Name], [Purchaser Address] (l'« Acheteur »)
1. ACHAT ET VENTE DES ACTIONS
Le Vendeur convient de vendre à l'Acheteur, et l'Acheteur convient d'acheter du Vendeur, [Number of Shares] [Share Class] de [Company Name] (NEQ : [Company NEQ]), représentant [Ownership Percentage] de toutes les actions émises et en circulation de la Société (les « Actions achetées »), libres et quittes de toute charge (hypothèques, sûretés et réclamations).
Cette transaction est régie à titre de contrat de vente de biens meubles incorporels en vertu des articles 1708 à 1733 C.c.Q., y compris les garanties légales du vendeur quant à la propriété (art. 1716 C.c.Q.) et contre les vices cachés (art. 1726 C.c.Q.).
2. PRIX D'ACHAT ET PAIEMENT
Prix d'achat : [Purchase Price] CAD, sous réserve d'ajustement tel que décrit ci-dessous.
Modalités de paiement : [Payment Terms]
Date de clôture : [Closing Date]. La clôture aura lieu simultanément — les actions et les certificats d'actions seront livrés contre réception du prix d'achat (contre-livraison).
Ajustements de prix : [Price Adjustments]
3. DÉCLARATIONS ET GARANTIES
Déclarations et garanties du Vendeur : [Vendor Representations]
Le Vendeur déclare que toutes les taxes dues par [Company Name] (impôt sur le revenu, TVQ du Québec, TPS fédérale, cotisations CNESST, retenues à la source) ont été établies, déclarées et payées à la date de la présente Convention. Le Vendeur déclare en outre que la Société est en règle auprès du Registraire des entreprises du Québec (REQ) et que toutes les déclarations annuelles requises ont été produites.
Les déclarations et garanties du Vendeur sont assujetties à ce qui suit : elles sont véridiques et complètes à tous égards importants à la date de la présente Convention et à la date de clôture; elles sont données dans l'intention d'inciter l'Acheteur à acheter les Actions achetées.
4. CONDITIONS PRÉALABLES ET CLÔTURE
Conditions préalables à la clôture : [Conditions Precedent]
À la clôture, le Vendeur doit remettre : (a) les certificats d'actions endossés ou les formulaires de transfert d'actions; (b) le registre des actionnaires mis à jour indiquant l'Acheteur comme propriétaire; (c) les démissions des administrateurs et dirigeants requises; (d) un certificat de dirigeant confirmant l'exactitude des déclarations à la date de clôture; (e) tous les livres et registres corporatifs de la Société.
5. NON-CONCURRENCE ET INDEMNISATION
Non-concurrence : [Non-Competition]
Indemnisation : [Indemnification]
L'Acheteur peut compenser toute réclamation d'indemnisation contre tout montant dû au Vendeur en vertu de billets de vendeur ou d'ententes de complément de prix (earn-out).
6. LOI APPLICABLE ET RÈGLEMENT DES DIFFÉRENDS
La présente Convention est régie par les lois de la province de Québec, y compris le Code civil du Québec (C.c.Q.), la Loi sur les sociétés par actions (RLRQ c S-31.1) et la Loi sur les impôts du Québec (RLRQ c I-3). Les différends seront résolus par médiation devant l'Institut de médiation et d'arbitrage du Québec (IMAQ), à défaut de quoi par arbitrage exécutoire en vertu des articles 620 à 655 du Code de procédure civile.
La présente Convention constitue l'entente complète entre les parties relativement à l'achat et à la vente des Actions achetées et remplace toutes les négociations, déclarations et ententes antérieures.
Vendeur
________________
Signature
Acheteur
________________
Signature
What Is a Share Purchase Agreement (Quebec)?
A Share Purchase Agreement is a formal legal document used in Quebec for business operations, corporate governance, and commercial transactions. Create a Quebec Share Purchase Agreement (Convention d'achat-vente d'actions) compliant with the Civil Code of Québec (CCQ arts. 1708–1733 on sale, arts. 1375, 1399–1408 on consent and good faith), the Business Corporations Act (CQLR c S-31.1, LSAQ), the Taxation Act (CQLR c I-3), and the Securities Act (CQLR c V-1.1). Covers purchase price, representations and warranties, closing conditions, adjustments, non-competition, indemnification, and AMF filing requirements. This document operates within Quebec's civil law (Civil Code of Quebec) framework and is designed to provide clear legal protection and certainty for all parties involved. In Quebec, this type of document is governed by several key pieces of legislation, including Civil Code of Quebec (CCQ), Act respecting labour standards (LNT), Act respecting the protection of personal information in the private sector (Law 25/LPRPSP), and Charter of Human Rights and Freedoms. These laws establish the legal requirements for valid agreements, the rights and obligations of the parties, and the remedies available in case of breach or dispute. Understanding the applicable legal framework is essential for drafting an effective Share Purchase Agreement that will be enforceable under Quebec law. The importance of having a properly drafted Share Purchase Agreement cannot be overstated. Without a clear, written agreement, parties risk misunderstandings, disputes, and potential legal liability. A well-drafted Share Purchase Agreement sets out the terms and conditions that govern the relationship between the parties, including their respective rights, obligations, and the procedures for resolving any disagreements that may arise. It serves as the primary reference point should any questions or disputes occur during the course of the arrangement. In today's regulatory environment in Quebec, compliance with legal requirements is increasingly important. Government bodies such as REQ, CNESST, TAL may require certain documentation to be in place, and failure to comply with applicable regulations can result in penalties, fines, or other adverse consequences. A Share Purchase Agreement helps confirm that all parties are meeting their legal obligations and provides a clear record of the agreed terms for future reference. Using a standardized Share Purchase Agreement template offers several practical advantages. It confirms that all essential clauses are included, reduces the time and cost of drafting from scratch, and provides a professional framework that can be customized to suit specific needs. Whether you are an individual, a small business owner, or a large corporation operating in Quebec, having access to a well-structured template confirms consistency and completeness in your legal documentation. Under Quebec law, Article 35 of the Code of Civil Procedure (CQLR c C-25.01) govern the core requirements for this type of document.
The legal framework governing the Share Purchase Agreement (Quebec) in Quebec draws on several key statutes and regulatory bodies. Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. The Consumer Protection Act (CQLR c P-40.1) and the Office de la protection du consommateur (OPC) protect consumer rights. The Act Respecting the Protection of Personal Information in the Private Sector governs data privacy through the Commission d'acces a l'information (CAI). Revenu Quebec administers provincial tax obligations. Parties executing a Share Purchase Agreement (Quebec) in Quebec should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Civil Code of Québec (CCQ), Book Five: Obligations sets the foundational requirements.
Article 1385 of the Civil Code of Quebec establishes the foundation of contractual obligations, while Article 1590 of the Civil Code of Quebec governs remedies for non-performance. Section 40 of the Consumer Protection Act of Quebec (CQLR c P-40.1) regulates unfair contract terms. The Commission des normes de l'equite de la sante et de la securite du travail (CNESST) enforces the Act Respecting Labour Standards of Quebec (CQLR c N-1.1). Section 49 of the Charter of Human Rights and Freedoms of Quebec protects fundamental civil liberties. The Tribunal administratif du Quebec (TAQ) hears administrative disputes under Section 14 of the Act Respecting Administrative Justice of Quebec (CQLR c J-3). The Regie du logement du Quebec (now Tribunal administratif du logement) adjudicates residential tenancy disputes under Section 28 of the Act Respecting the Regie du logement of Quebec. The Autorite des marches financiers du Quebec (AMF) regulates financial services under Section 4 of the Act Respecting the Autorite des marches financiers of Quebec. Revenu Quebec administers the Taxation Act of Quebec (CQLR c I-3) and the Act Respecting the Quebec Sales Tax of Quebec (CQLR c T-0.1). The Barreau du Quebec and the Chambre des notaires du Quebec regulate legal professionals under Section 1 of the Professional Code of Quebec (CQLR c C-26).
When Do You Need a Share Purchase Agreement (Quebec)?
A Share Purchase Agreement is needed whenever parties in Quebec wish to formalize their arrangement regarding business operations, corporate governance, and commercial transactions. There are numerous situations in which this document becomes essential for protecting the interests of all involved parties. In a business context, you may need a Share Purchase Agreement when entering into new commercial relationships, when formalizing existing arrangements that have previously been informal, when expanding your business operations, or when restructuring existing agreements. Companies registered with REQ should confirm proper documentation is maintained for all significant business transactions. You should also consider using a Share Purchase Agreement when there has been a change in circumstances that affects an existing arrangement, when you need to comply with new regulatory requirements, when you wish to update outdated documentation, or when professional advisors recommend formalizing certain aspects of your affairs. In Quebec, maintaining current and accurate legal documentation is considered best practice and can help prevent costly disputes. It is generally advisable to prepare a Share Purchase Agreement before any issues arise, rather than trying to document terms after a dispute has already begun. Proactive documentation provides clarity and reduces the potential for misunderstandings. If you are unsure whether you need this document for your specific situation in Quebec, consulting with a qualified legal professional can provide guidance tailored to your circumstances. The timing of executing a Share Purchase Agreement is also important. In Quebec, certain documents must be executed before specific actions are taken or within prescribed time periods to be effective. Delaying the preparation of necessary legal documents can result in complications, lost rights, or additional costs. Therefore, it is recommended to prepare this document as early as possible once the need has been identified. Under Quebec law, Section 4 of the Business Corporations Act (CQLR c S-31.1) and Article 1385 of the Civil Code of Québec (CCQ) govern the core requirements for this type of document.
Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. The Consumer Protection Act (CQLR c P-40.1) and the Office de la protection du consommateur (OPC) protect consumer rights. The Act Respecting the Protection of Personal Information in the Private Sector governs data privacy through the Commission d'acces a l'information (CAI). Revenu Quebec administers provincial tax obligations.
What to Include in Your Share Purchase Agreement (Quebec)
A well-drafted Share Purchase Agreement for use in Quebec should contain several essential elements to confirm it is legally effective and provides adequate protection for all parties. Party Identification: The document should clearly identify all parties involved, including their full legal names, addresses, and relevant identification numbers. For individuals in Quebec, this may include identity card or passport numbers. For companies, registration numbers and registered addresses should be specified. Clear identification prevents disputes about who is bound by the agreement. Recitals and Background: The document should include background information explaining the context and purpose of the arrangement. This helps establish the parties' intentions and can be important in interpreting the terms of the document if any ambiguity arises later. The recitals section provides valuable context for the operative provisions that follow. Operative Terms: The core terms and conditions should be set out clearly and thoroughly. This includes the rights and obligations of each party, any conditions or prerequisites, the duration of the arrangement, and any limitations or restrictions. All key terms should be defined precisely to avoid ambiguity and potential disputes. Payment and Financial Terms: Where applicable, the document should specify any payments, fees, deposits, or other financial considerations. The amounts, currency (CAD), payment schedules, and methods of payment should be clearly stated. Any provisions for late payment, interest charges, or adjustments should also be included. Term and Termination: The document should specify its duration, including the start date, end date or conditions for expiry, and any provisions for renewal or extension. The circumstances under which either party may terminate the arrangement early should be clearly defined, along with any notice requirements and the consequences of termination. Dispute Resolution: The document should include provisions for resolving any disputes that may arise, such as negotiation, mediation, arbitration, or litigation. In Quebec, parties may choose to specify the jurisdiction of Quebec courts and the applicable law. Including a clear dispute resolution mechanism can save significant time and expense if disagreements occur. Governing Law and Jurisdiction: The document should specify that it is governed by the laws of Quebec and that disputes shall be subject to the jurisdiction of Quebec courts. This is particularly important in cross-border transactions or where parties are based in different jurisdictions. Signatures and Execution: The document must be properly signed by all parties or their authorised representatives. In Quebec, certain documents may need to be witnessed, notarised, or executed as deeds to be legally effective. The date of execution should be clearly recorded, and each party should retain an original signed copy for their records. Under Quebec law, Article 35 of the Code of Civil Procedure (CQLR c C-25.01) govern the core requirements for this type of document. Under Quebec law, Section 4 of the Business Corporations Act (CQLR c S-31.1) and Article 1385 of the Civil Code of Québec (CCQ) govern the core requirements for this type of document.
Additional compliance elements for a Share Purchase Agreement (Quebec) used in Quebec include: Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. The Consumer Protection Act (CQLR c P-40.1) and the Office de la protection du consommateur (OPC) protect consumer rights. The Act Respecting the Protection of Personal Information in the Private Sector governs data privacy through the Commission d'acces a l'information (CAI). Revenu Quebec administers provincial tax obligations. Forms-legal.com provides this template as a starting point for Quebec-compliant documentation.
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Forms Legal. (2026). Share Purchase Agreement (Quebec) (Quebec) [Legal document template]. Forms Legal. https://forms-legal.com/quebec/business/corporate/share-purchase-agreement-quebec
"Share Purchase Agreement (Quebec) (Quebec)." Forms Legal, 2026, https://forms-legal.com/quebec/business/corporate/share-purchase-agreement-quebec.
Forms Legal. "Share Purchase Agreement (Quebec) (Quebec)." Forms Legal, 2026. https://forms-legal.com/quebec/business/corporate/share-purchase-agreement-quebec.
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Frequently Asked Questions
A share purchase agreement in Quebec is governed primarily by the Civil Code of Québec (CCQ) as a contract of sale (contrat de vente, arts. 1708–1733 CCQ) for movable property (biens meubles incorporels). This means that general Quebec contract law principles apply: the agreement must have a lawful cause (art. 1410 CCQ), the consent of both parties must be free and informed (art. 1399 CCQ), the agreement must be performed in good faith (art. 1375 CCQ), and the vendor has statutory warranty obligations under the CCQ (guarantee against eviction and latent defects, arts. 1715–1733 CCQ). In practice, share purchase agreements for private companies extensively modify and expand on these statutory warranties through negotiated representations and warranties sections. The CCQ's eviction warranty (garantie contre l'éviction) — the vendor's obligation to ensure the purchaser's peaceful ownership — is particularly relevant: the vendor represents that they own the shares free and clear, that no third party has a claim to the shares, and that the shares are not subject to undisclosed security interests (hypothèques). The vendor's right to sell (droit de vendre, art. 1716 CCQ) must be clear, meaning any restrictions on transfer in the articles or shareholders agreement must have been complied with before the share purchase agreement is signed.
A typical Quebec share purchase agreement includes extensive representations and warranties from the vendor about the company being sold, as well as title warranties from the vendor about the shares themselves. Title representations typically include: the vendor is the registered and beneficial owner of all shares; the shares are validly issued, fully paid, and non-assessable; no option, warrant, convertible instrument, or other right to acquire additional shares is outstanding; there are no security interests (hypothèques) or encumbrances on the shares; and no consent is required for the transfer (or all required consents have been obtained). Corporate representations typically include: the company is duly incorporated under the LSAQ and in good standing with the REQ; the financial statements are true and complete and prepared in accordance with ASPE (Accounting Standards for Private Enterprises); there are no material liabilities or contingent liabilities not disclosed in the financial statements; no material adverse change has occurred since the last financial statements date; all taxes (income tax, QST, GST, payroll source deductions, CNESST) have been filed and paid; all material contracts are valid and enforceable; no pending or threatened litigation; all required CNESST, REQ, and other regulatory registrations are current; and the company is not in breach of applicable law. Materiality thresholds and knowledge qualifiers are intensively negotiated.
A share sale transaction in Quebec has distinct tax implications from an asset sale transaction. For the vendor shareholder, a share sale produces a capital gain (or capital loss) equal to the proceeds of disposition minus the adjusted cost base (ACB) of the shares and selling costs. Half (currently) of the capital gain is included in income as a taxable capital gain. If the shares are qualifying small business corporation shares (QSBCS) under s. 110.6 of the Income Tax Act, the vendor may be entitled to the Lifetime Capital Gains Exemption (LCGE) of up to $1,016,602 (2023, indexed) federally, and Quebec provides a corresponding provincial deduction. Meeting QSBCS criteria requires the company to have been a Canadian-controlled private corporation (CCPC), with at least 90% of its assets used principally in an active business in Canada throughout the 24 months preceding the sale. For the purchaser corporation (if a corporation), a share purchase does not generate an automatic step-up in the tax cost of the underlying corporate assets — the assets retain their tax values inside the company. This distinguishes share purchases from asset purchases (where the purchaser acquires assets at fair market value for tax purposes). The purchaser must therefore assess the tax cost of the purchased company's assets carefully and may seek price adjustments for tax liabilities. Transaction costs in a Quebec share sale (legal fees, accounting fees) are generally deducted from proceeds of disposition for capital gains purposes.
A Quebec share purchase agreement typically includes a list of conditions precedent (conditions suspensives) that must be satisfied or waived before the closing (clôture) can take place. Conditions precedent protect each party's right to walk away if specified events do not occur. Vendor's conditions precedent to closing typically include: receipt of the purchase price at closing; receipt of all ancillary closing documents from the purchaser (officer certificate, corporate authorization); and no material adverse change affecting the purchaser's ability to complete. Purchaser's conditions precedent to closing typically include: accuracy of the vendor's representations and warranties as of the closing date (bringdown condition); compliance by the vendor with all covenants in the agreement; receipt of all required third-party consents — including consents of key clients, lenders, or landlords who have change-of-control provisions in their agreements, and compliance with any right of first refusal in the shareholders agreement; regulatory approvals if required (Competition Act notification for large transactions; Investissement Québec or industry-specific approvals); delivery of resignations from directors and officers as agreed; delivery of tax clearance certificates (cédule de règlement fiscal) from Revenu Québec and CRA if negotiated; and delivery of the share certificates endorsed in blank or share transfer documentation.
A Share Purchase Agreement (Quebec) does not legally require a lawyer in Quebec, and individuals and businesses may draft and execute the document independently. The Civil Code of Québec (CCQ), Book Five: Obligations does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Quebec lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Superior Court of Québec has jurisdiction over disputes arising from this type of document, and Registraire des entreprises du Québec may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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