Document background
The Cross Purchase Agreement serves as a critical business succession planning tool in Qatar, particularly valuable for closely-held companies and professional practices. It becomes necessary when business owners want to ensure controlled ownership transition and business continuity while complying with Qatar's legal framework. The agreement typically includes provisions for mandatory purchase obligations upon triggering events, valuation methodologies aligned with Qatar market practices, funding mechanisms (often through life insurance), and specific compliance requirements under Qatar's Commercial Companies Law and Sharia principles. This document is especially relevant in contexts where maintaining control over ownership transfers is crucial and where existing owners wish to avoid unwanted third-party entrants into the business.
