Document background
The Share Buyout Agreement is a crucial document used in Nigerian corporate transactions when one or more shareholders wish to sell their shares to other parties, whether existing shareholders or new investors. This agreement is essential for both private and public companies operating under Nigerian law, particularly considering the requirements of the Companies and Allied Matters Act (CAMA) 2020. It details the complete transaction structure, including share valuation, payment terms, conditions precedent, and completion requirements. The document addresses key regulatory considerations, tax implications, and necessary corporate approvals while incorporating appropriate warranties and representations to protect all parties' interests. It's particularly important in scenarios involving corporate restructuring, exit strategies, or strategic investments, and must comply with Nigerian securities regulations and foreign exchange requirements when international parties are involved.
