Document background
The Share Buyback Agreement is a crucial document used when a company wishes to repurchase its own shares from existing shareholders in Hong Kong. This document is essential for companies implementing capital management strategies, facilitating exit arrangements, or adjusting their shareholding structure. The agreement must comply with the Hong Kong Companies Ordinance (Cap. 622), which sets out specific requirements for share buybacks, including funding restrictions and shareholder approval thresholds. For listed companies, additional requirements under the Hong Kong Code on Share Buy-backs and Listing Rules must be incorporated. The document typically includes detailed provisions on purchase price calculation, completion mechanics, regulatory compliance, tax implications, and necessary warranties and representations from both parties.
