Document background
The Share Buyback Agreement is a crucial document used when a company decides to repurchase its own shares from existing shareholders under German law. This document is typically employed following board and/or shareholder approval, when a company wishes to reduce its share capital, implement an employee share scheme, or manage its capital structure efficiently. The agreement must comply with the strict requirements of the German Stock Corporation Act (Aktiengesetz), particularly the 10% limitation on share capital for buybacks, unless specific exceptions apply. The document details the purchase price calculation, transfer mechanics, representations and warranties, and includes necessary regulatory compliance provisions. It's particularly important for listed companies who must also comply with additional requirements under the Market Abuse Regulation and trading restrictions.
