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Company Selling Agreement for United Arab Emirates

Company Selling Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that documents the terms and conditions for the sale and purchase of a company, whether through share transfer or asset sale. The agreement is structured to comply with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and other relevant UAE regulations, incorporating necessary provisions for ownership transfer, warranties, indemnities, and completion mechanics. It includes detailed sections covering purchase price, payment terms, conditions precedent, and post-completion obligations, while addressing specific UAE requirements such as notarization and regulatory approvals.

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What is a Company Selling Agreement?

The Company Selling Agreement is a crucial document used in the UAE business environment when transferring ownership of a company from one party to another. It is essential for both private and public company transactions, though specific requirements may vary. The agreement must comply with UAE Federal Law No. 32 of 2021 and related regulations, including provisions for foreign ownership if applicable. This document type is particularly important given the UAE's dynamic business environment and increasing M&A activity across various sectors. The agreement typically includes comprehensive provisions for due diligence findings, warranties, indemnities, and specific UAE requirements such as governmental approvals and notarization procedures. It serves as the primary transaction document in company acquisitions, whether structured as a share sale or asset purchase.

What sections should be included in a Company Selling Agreement?

1. Parties: Identification of the seller and buyer entities, including full legal names, license numbers, and registered addresses

2. Background: Context of the transaction, brief description of the company being sold, and purpose of the agreement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including what is being sold (shares/assets), purchase price, and completion mechanics

5. Purchase Price and Payment: Detailed breakdown of consideration, payment terms, adjustments, and payment mechanics

6. Conditions Precedent: Prerequisites that must be satisfied before completion, including regulatory approvals and third-party consents

7. Pre-Completion Obligations: Parties' obligations between signing and completion, including conduct of business requirements

8. Completion: Detailed completion mechanics, timing, and deliverables

9. Seller Warranties: Comprehensive warranties regarding the company, its assets, liabilities, and operations

10. Buyer Warranties: Basic warranties from the buyer regarding capacity and authority

11. Limitations on Liability: Limitations on warranty claims and general liability caps

12. Post-Completion Obligations: Ongoing obligations after completion, including transitional arrangements

13. Confidentiality: Provisions regarding confidential information and announcements

14. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions

15. General Provisions: Standard boilerplate provisions including notices, amendments, and assignment

What sections are optional to include in a Company Selling Agreement?

1. Non-Competition: Restrictions on seller's competitive activities - include when seller could compete with the business

2. Employee Matters: Specific provisions regarding treatment of employees - include when staff transfer is material

3. Tax Covenant: Specific tax indemnities and arrangements - include when tax exposure is significant

4. Intellectual Property: Detailed IP transfer provisions - include when IP is a material asset

5. Real Estate: Specific provisions for property transfers - include when real estate is material

6. Environmental Matters: Environmental warranties and indemnities - include for industrial businesses

7. Earn-out Provisions: Structure for additional payments based on performance - include when price includes contingent elements

8. Break Fee: Compensation if deal fails - include for complex transactions with significant due diligence costs

What schedules should be included in a Company Selling Agreement?

1. Company Information: Detailed information about the target company including corporate documents

2. Properties: List and details of all real estate owned or leased

3. Intellectual Property: Schedule of all IP rights owned or licensed

4. Material Contracts: List and copies of all material commercial contracts

5. Employees: List of employees with key terms of employment

6. Bank Accounts: Details of all company bank accounts and financial facilities

7. Completion Deliverables: List of all documents to be delivered at completion

8. Warranties: Detailed warranties schedule

9. Permitted Encumbrances: List of permitted liens and encumbrances

10. Form of Resignation Letters: Template resignation letters for outgoing directors

11. Form of Transfer Instruments: Template share transfer forms and other transfer documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




























































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Relevant Industries

Manufacturing

Retail

Technology

Professional Services

Real Estate

Healthcare

Education

Financial Services

Construction

Hospitality

Energy

Transportation

Media and Entertainment

Consumer Goods

Industrial Services

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Executive Leadership

Risk & Compliance

Business Development

Strategy

Corporate Secretariat

Treasury

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Corporate Lawyer

Legal Counsel

Company Secretary

Business Development Director

Head of Mergers & Acquisitions

Investment Manager

Financial Controller

Risk Manager

Compliance Officer

Board Director

Commercial Director

Strategy Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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