Document background
The Share Redemption Agreement is a crucial document used when a Dutch company wishes to buy back its own shares from existing shareholders. This transaction type is governed by Dutch law, specifically the Dutch Civil Code (Burgerlijk Wetboek), and requires careful consideration of corporate, tax, and financial aspects. The agreement becomes necessary in various scenarios, including share capital restructuring, exit of shareholders, or implementation of employee share schemes. It must comply with strict Dutch legal requirements regarding capital maintenance, creditor protection, and corporate governance. The document typically includes detailed provisions about the redemption price, completion mechanics, warranties, and tax treatments, while ensuring all necessary corporate approvals are obtained and documented. For listed companies, additional requirements under the Dutch Financial Supervision Act may apply.
