Document background
The Contract Of Sale Of Shares is a crucial legal document used in Qatar for executing share transfer transactions in both private and public companies. It is required whenever there is a transfer of share ownership, whether for a minority stake or a complete acquisition. The document must comply with Qatar Commercial Companies Law No. 11 of 2015 and related regulations, including specific requirements for foreign ownership restrictions, board approvals, and governmental registrations. The agreement typically includes detailed provisions on purchase price, payment mechanisms, warranties about the company and shares, conditions precedent, completion procedures, and post-completion obligations. It serves as both the legal basis for the transfer and a risk allocation mechanism between the parties. The document requires careful consideration of Qatar's commercial, regulatory, and tax implications, and often needs to be executed in Arabic or bilingual format for official registration purposes.
