Document background
A Term Sheet For Acquisition Of Shares is a crucial preliminary document used in Malaysian corporate transactions to establish the framework for share acquisition deals. It is typically prepared after initial discussions between parties but before detailed due diligence and definitive agreements. The document captures key commercial terms, conditions, and transaction structure while generally remaining non-binding except for specific provisions such as confidentiality and exclusivity. Under Malaysian law, this document helps parties align their expectations and serves as a roadmap for lawyers drafting the final agreements. It's particularly important in the Malaysian context where it needs to comply with various regulations including the Companies Act 2016 and, where applicable, the Capital Markets and Services Act 2007. The term sheet typically precedes more detailed documentation and helps streamline the negotiation process by addressing potential deal-breakers early in the transaction.
