Document background
The Sale of Share Agreement is a crucial document used in Pakistani corporate transactions when transferring ownership of shares from one party to another. It is essential for both private and public company share transfers, though specific requirements may vary. The agreement must comply with Pakistani legislation, particularly the Companies Act 2017, Contract Act 1872, and relevant securities laws. It typically includes comprehensive details about the transaction structure, purchase price, payment terms, warranties, indemnities, and completion mechanisms. The document is particularly important as it provides legal protection for both parties and creates a clear record of the transaction terms. For listed companies, additional regulatory requirements from the Securities and Exchange Commission of Pakistan may apply. The agreement should be properly stamped according to the Stamp Act 1899 and may require registration with relevant authorities depending on the transaction size and nature.
