Document background
The Equity Buyout Agreement is a crucial document used in corporate acquisitions and private equity transactions in Hong Kong. It serves as the primary transaction document when one party wishes to acquire the equity interests of another party in a company, whether as a complete or partial buyout. The agreement must comply with Hong Kong's legal framework, particularly the Companies Ordinance (Cap. 622) and Securities and Futures Ordinance (Cap. 571). It typically includes detailed provisions on purchase price mechanisms, conditions precedent, warranties and indemnities, and completion requirements. The document is essential for both private and public company transactions, though additional regulatory requirements may apply for listed companies. This agreement type is commonly used in corporate restructurings, private equity investments, and exit transactions, providing a comprehensive framework for the transfer of ownership while protecting both buyers' and sellers' interests under Hong Kong law.
