Document background
The Equity Purchase Agreement is a fundamental transaction document used in Hong Kong for corporate acquisitions and investments. It is employed when one party wishes to acquire ownership interest in a company through the purchase of equity shares from existing shareholders. The agreement must comply with Hong Kong's legal framework, particularly the Companies Ordinance (Cap. 622) and Securities and Futures Ordinance (Cap. 571). It contains detailed provisions covering purchase price mechanisms, warranties, indemnities, conditions precedent, and completion requirements. This document is crucial for both private and public company transactions, though its specific contents may vary depending on the transaction size, industry sector, and whether the target company is listed or privately held. The agreement typically requires input from legal counsel, financial advisors, and corporate executives to ensure all commercial and legal aspects are properly addressed.
