Transferring the ownership of your business to another party is the most inconvenient and bothersome work in the life of a company. Everything becomes uncertain, dull and there seems no hope ahead despite the fact that only the owner is going to change, not the company. This, nevertheless, is not a mere change in the CEO office only for the entire nature of the business that can be subjected to amendments.
Generally, the CEO of a company does not transfer its designation to anyone under normal circumstances. Though there could be multiple factors involved pertaining to this shocking evolution, most commonly there are only two reasons for it. The primary being the continuous deficit in the revenue of the business and the management unable to cope with this downfall and the second, you are offered far more shares than you’d ever imagine making.
In the year 2020, we have seen multiple social media companies selling their ownership to a particular competitor. The major reason was the same, they were proposed way more than they were already making.
Now once a company waives its right to the ownership and hands it over to someone else, the navigation is entirely determined by the new administration. It can keep the already in work machinery or renew the system altogether. Usually, a blend of both new and old traditions is seen in such cases.
This demanding nature of this transfer is quite grave encompassing multi-fold aspects with a diverse range of consequences. Henceforth, not only a top-notch lawyer who knows how to do his job should be hired, regardless of the scale of your business, but also legal documents with authentic notarizations should be ready for any mishap.
A letter of transfer of ownership is one of the many documents the company lines up. This letter has to be written cautiously so there are no loopholes and shortcomings left that can be manipulated.
This letter simply describes how the ownership has been changed and the charges handed over to the second party. It introduces the roles and rights of new management and also sheds light on the administration’s designation. You may also refer to the clauses and conditions, if any, related to this new change.
Following is a mock letter of transfer of ownership of the business for you. Take notes and alter the details however it suits best for you.
To whom it may concern,
I, [NAME], hereby swear that I am the true owner of [company name] involved in this application. I declare that I waiver my ownership to this company and transfer all rights of it to Mr. Joe Hansen.
I grant him the authority to act on my behalf as he is the new owner of [Company Name] now. All the clauses, terms, and conditions are enclosed herein, and I testify all the statements, conditions and rights are true in all respects to the best of my knowledge.
The attached copies of relevant documents are genuine and agreed upon by both parties. I agree to respect the agreement and not violate any rule or transgress any boundaries.
Signed by Ex-owner
Signed by New Owner