Document background
The Stock Redemption Agreement is a crucial document used when a Swiss company decides to repurchase its own shares from existing shareholders. This may occur in various situations, such as shareholder exits, succession planning, or corporate restructuring. The agreement must strictly comply with Swiss corporate law requirements, particularly the Swiss Code of Obligations provisions regarding share capital maintenance and corporate governance. It outlines the complete transaction structure, including share valuation, payment terms, conditions precedent, and closing requirements. The document becomes especially important in private companies where share transfers are more restricted and must address specific Swiss regulatory requirements, including potential commercial register filings and tax implications. The agreement serves as the primary reference point for all parties involved in the transaction and helps ensure a smooth transfer process while maintaining legal compliance.
