Confirmation of no outstanding Intra-group Indebtedness of Companies

The document titled 'Confirmation of no outstanding Intra-group Indebtedness of Companies' is an important document that serves to confirm the absence of any outstanding intra-group indebtedness between companies within a group. The document is typically used in the context of a sale and purchase agreement for the entire issued share capital of a company.

 

The document begins with a header that includes the title of the document, which clearly states its purpose. It also includes the date of the document and the addressee, which is the counterparty involved in the agreement.

 

The body of the document starts with a salutation, addressing the counterparty as 'dear sirs'. It then provides a confirmation of no indebtedness, stating that there are no outstanding intra-group indebtedness (other than intra-group trading indebtedness) owed to any member of the retained group from any group company.

 

The document further states that if any outstanding amount or liability exists or may exist, the seller releases each group company from any obligation to pay such amount or have such liability. The seller also agrees to fully indemnify the buyer and each group company and hold them harmless in respect of the same.

 

The document concludes with a statement that it shall be governed by and construed in accordance with the laws of the jurisdiction country. It is signed off with a closing phrase and the name of the individual or company on behalf of whom the letter is being sent.

 

In summary, this document is crucial in confirming the absence of any outstanding intra-group indebtedness between companies within a group, providing assurance to the counterparty and protecting the interests of the buyer and group companies involved in the agreement.

How to use this document?

To effectively use the 'Confirmation of no outstanding Intra-group Indebtedness of Companies' document, follow these steps:

1. Review the document: Familiarize yourself with the content and purpose of the document. Understand that its main objective is to confirm the absence of any outstanding intra-group indebtedness between companies within a group.

2. Fill in the necessary information: Enter the relevant details in the document, such as the account job company's address, the counterparty's information, and the current date. Ensure accuracy and completeness.

3. Understand the context: Recognize that this document is typically used in the context of a sale and purchase agreement for the entire issued share capital of a company. Consider the implications and relevance of this confirmation in relation to the specific agreement.

4. Confirm absence of indebtedness: Clearly state that there are no outstanding intra-group indebtedness (other than intra-group trading indebtedness) owed to any member of the retained group from any group company. Provide assurance to the counterparty regarding the absence of such indebtedness.

5. Release of obligations: Specify that if any outstanding amount or liability exists or may exist, the seller releases each group company from any obligation to pay such amount or have such liability. Emphasize the seller's agreement to fully indemnify the buyer and each group company and hold them harmless in respect of the same.

6. Governed by applicable laws: Include a statement that the document shall be governed by and construed in accordance with the laws of the jurisdiction country. Ensure compliance with relevant legal requirements.

7. Sign and send the document: Sign off the document on behalf of the account job company or individual, as applicable. Ensure that the document is sent to the counterparty in a timely manner.

By following these steps, you can effectively use the 'Confirmation of no outstanding Intra-group Indebtedness of Companies' document to confirm the absence of any outstanding intra-group indebtedness and protect the interests of the parties involved in the agreement.