Document background
The Shareholder Buyout Agreement is a crucial document used when existing shareholders wish to exit a company by transferring their shares to other shareholders or back to the company itself. This document is particularly important in the Malaysian corporate landscape, where such transactions must comply with the Companies Act 2016 and related regulations. It is commonly used in situations such as retirement of founding members, resolution of shareholder disputes, or strategic restructuring of ownership. The agreement typically includes detailed provisions on valuation methods, payment terms, warranties, and both pre- and post-completion obligations. It serves to protect all parties' interests while ensuring a smooth transition of ownership and maintaining business continuity.
