Document background
The Equity Stake Agreement is a crucial document used in Nigerian corporate transactions when a new investor acquires ownership in a company or when existing ownership structures are modified. This agreement, governed by Nigerian law and compliant with CAMA 2020, serves multiple purposes: it documents the transfer or issuance of shares, establishes governance rights, protects minority interests, and sets out clear procedures for future corporate actions. The document is essential for both domestic and foreign investments, requiring careful consideration of local regulatory requirements, including those from the Corporate Affairs Commission and, where applicable, the Securities and Exchange Commission. It typically includes detailed provisions on share valuation, transfer restrictions, management participation, and exit mechanisms, making it a fundamental tool for corporate restructuring and investment transactions in Nigeria.
