Document background
A Company Share Agreement is a crucial document used in Nigerian corporate transactions to formalize the transfer, sale, or allocation of company shares between parties. This agreement is essential when executing share transfers, introducing new shareholders, implementing employee share schemes, or reorganizing company ownership structures. The document must comply with the Companies and Allied Matters Act (CAMA) 2020, Investment and Securities Act 2007, and other relevant Nigerian legislation. It typically includes detailed provisions on share valuation, transfer mechanics, shareholder rights, management participation, and protective covenants. The agreement serves as both a regulatory compliance tool and a risk management instrument, ensuring clear documentation of ownership changes while protecting the interests of all parties involved. It's particularly important in the Nigerian context where corporate governance requirements and regulatory oversight have become increasingly stringent.
