Document background
A Share Distribution Agreement is essential when a company needs to formalize the arrangement for distributing its shares to investors, whether through private placement or public offering in Malaysia. This document is crucial for compliance with Malaysian corporate and securities laws, particularly the Companies Act 2016 and Capital Markets and Services Act 2007. It details the distribution mechanism, share pricing, allocation procedures, and regulatory requirements. The agreement becomes particularly important during corporate restructuring, initial public offerings (IPOs), private placements, or when implementing employee share schemes. It must address specific Malaysian regulatory requirements, including those set by the Securities Commission and, where applicable, Bursa Malaysia listing rules.
