Document background
The Sale of Equity Agreement is a crucial document used in Hong Kong for transferring ownership of shares or equity interests in a company. It is typically employed when shareholders wish to sell their stake in a business, during corporate restructuring, or in merger and acquisition transactions. The agreement must comply with Hong Kong's legal framework, particularly the Companies Ordinance (Cap. 622) and Securities and Futures Ordinance (Cap. 571). This document contains essential elements such as share transfer terms, warranties, representations, conditions precedent, and completion mechanics. Special consideration is given to Hong Kong-specific requirements including stamp duty obligations, regulatory approvals, and corporate governance requirements. The Sale of Equity Agreement serves as both a record of the transaction and a protective mechanism for all parties involved, ensuring clear documentation of rights, obligations, and post-completion arrangements.
