Document background
The Shareholder Purchase Agreement is a vital legal instrument used in Pakistani corporate transactions when one or more shareholders wish to sell their ownership stake to other parties. This document is essential for both private and public companies operating under Pakistani jurisdiction, particularly in compliance with the Companies Act 2017 and related regulations. It covers crucial elements such as share valuation, payment terms, representations and warranties, conditions precedent, and completion mechanics. The agreement is particularly important in Pakistan's evolving business landscape, where increasing foreign investment and domestic corporate activity necessitate robust legal documentation. It provides necessary protections for both sellers and purchasers while ensuring regulatory compliance, especially with Securities and Exchange Commission of Pakistan (SECP) requirements and applicable tax laws.
