Document background
The Sale of Equity Agreement is a crucial document used in Pakistani corporate transactions when transferring ownership of shares or equity interests in a company. This agreement is essential for both private and public companies, requiring careful consideration of Pakistani corporate law, securities regulations, and tax implications. The document typically includes detailed provisions about the shares being transferred, purchase price, payment mechanisms, warranties, and regulatory compliance requirements. It's particularly important in the Pakistani context due to specific requirements under the Companies Act 2017 and SECP regulations. The agreement serves to protect both parties' interests while ensuring legal compliance and proper documentation of the transaction. Common scenarios for its use include business acquisitions, strategic investments, corporate restructuring, and exit arrangements.
