Share Transfer Agreement Template for Malaysia

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Key Requirements PROMPT example:

Share Transfer Agreement

"I need a Share Transfer Agreement for transferring 10,000 ordinary shares in my Malaysian private limited company to a corporate buyer, with completion scheduled for March 15, 2025 and payment to be made in three installments."

Document background
The Share Transfer Agreement is a crucial document used in Malaysian corporate transactions to formalize and execute the transfer of shares between parties. It is essential when ownership of shares in a Malaysian company needs to be transferred, whether as part of a larger corporate restructuring, investment transaction, or simple share sale. The agreement must comply with the Malaysian Companies Act 2016, Capital Markets and Services Act 2007, and other relevant regulations. It typically includes detailed provisions about the shares being transferred, payment terms, representations and warranties, and completion mechanics. The document is particularly important as it serves as evidence of the transfer for corporate records, regulatory filings, and stamp duty purposes.
Suggested Sections

1. Parties: Identification of the transferor (seller) and transferee (buyer) with complete details including registration numbers for companies

2. Background: Context of the transaction, information about the company whose shares are being transferred, and current shareholding structure

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core provision detailing the agreement to sell and purchase the shares

5. Consideration: Details of the purchase price and payment terms

6. Completion: Mechanics of completion, including timing, location, and actions to be taken

7. Seller's Warranties: Standard warranties regarding ownership, authority to sell, and status of shares

8. Buyer's Warranties: Basic warranties regarding authority and capacity to purchase

9. Tax Matters: Provisions relating to stamp duty and other applicable taxes

10. Confidentiality: Obligations regarding confidentiality of the transaction

11. Notices: Process for serving notices under the agreement

12. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

Optional Sections

1. Conditions Precedent: Used when completion is subject to certain conditions being satisfied, such as regulatory approvals

2. Pre-Completion Obligations: Required when there's a gap between signing and completion, specifying how the business should be conducted

3. Non-Competition: Added when the seller needs to be restricted from competing post-completion

4. Tag-Along Rights: Included when minority shareholders need protection in case of future share sales

5. Drag-Along Rights: Used when majority shareholders want the right to force minority shareholders to join in a sale

6. Further Assurance: Added in complex transactions where additional actions may be needed post-completion

7. Break Fee: Included when parties want to specify compensation if the deal fails for specific reasons

Suggested Schedules

1. Details of the Company: Complete corporate information about the company whose shares are being transferred

2. Details of the Sale Shares: Specific information about the shares being transferred including share certificate numbers

3. Form of Transfer: The prescribed form of share transfer under Malaysian law

4. Completion Checklist: List of all documents and actions required at completion

5. Warranties: Detailed warranties given by the seller regarding the company and shares

6. Board Resolutions: Pro-forma board resolutions approving the share transfer

7. Regulatory Filings: Templates or copies of required regulatory filings

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Financial Services

Manufacturing

Technology

Real Estate

Retail

Healthcare

Energy

Transportation

Professional Services

Construction

Agriculture

Mining

Education

Telecommunications

Relevant Teams

Legal

Finance

Corporate Secretarial

Compliance

Corporate Development

Mergers & Acquisitions

Investment

Tax

Treasury

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Company Secretary

Legal Counsel

Corporate Lawyer

Finance Director

Investment Manager

Managing Director

Board Director

Compliance Officer

Corporate Finance Manager

Mergers & Acquisitions Director

General Counsel

Transaction Manager

Business Development Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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