Document background
The Forward Share Purchase Agreement is a sophisticated legal instrument used in Pakistani corporate transactions to structure future share acquisitions. This document type is particularly valuable when parties wish to agree on share transfer terms now but execute the actual transfer at a future date, often subject to specific conditions or regulatory approvals. Under Pakistani law, these agreements must comply with the Companies Act 2017, Securities Act 2015, and relevant foreign exchange regulations if international parties are involved. The agreement typically includes detailed provisions on share valuation, payment terms, conditions precedent, warranties, and completion mechanics, while ensuring compliance with local corporate governance requirements and regulatory frameworks. It's commonly used in strategic acquisitions, corporate restructuring, and investment transactions where a delayed completion is necessary or advantageous.
