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Sale Of Shares Agreement for Malaysia

Sale Of Shares Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that documents the terms and conditions for the sale and transfer of shares from one party (the seller) to another (the purchaser). The agreement is structured according to Malaysian Companies Act 2016 and related legislation, incorporating necessary provisions for share transfer, warranties, representations, and completion mechanics. It includes specific requirements under Malaysian corporate law, such as stamp duty obligations and company registry filing requirements, while addressing key commercial terms including purchase price, payment mechanisms, and post-completion obligations.

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What is a Sale Of Shares Agreement?

A Sale Of Shares Agreement is a crucial document used in Malaysian corporate transactions when transferring ownership of shares in a company from one party to another. This document is essential for both private and public company share transfers, though requirements vary based on company type and transaction size. The agreement must comply with Malaysian legislation, particularly the Companies Act 2016, Capital Markets and Services Act 2007, and Stamp Act 1949. It typically includes detailed provisions on share valuation, payment terms, warranties, representations, conditions precedent, and completion mechanics. The document is particularly important in Malaysia's robust M&A market, where foreign investment regulations and local corporate law requirements must be carefully considered. It serves as both a legal record of the transaction and a roadmap for its completion.

What sections should be included in a Sale Of Shares Agreement?

1. Parties: Identifies and provides full details of the seller(s) and purchaser(s)

2. Background: Provides context about the company, the shares being sold, and the purpose of the transaction

3. Definitions: Defines key terms used throughout the agreement

4. Sale and Purchase: Core terms of the transaction including number of shares, price, and basic obligations

5. Purchase Price: Detailed provisions regarding the consideration, payment terms, and payment method

6. Completion: Specifies the completion date, location, and actions required at completion

7. Seller's Warranties: Standard warranties regarding ownership, authority to sell, and company status

8. Purchaser's Warranties: Basic warranties regarding capacity to purchase and authority

9. Pre-Completion Obligations: Seller's obligations regarding company management between signing and completion

10. Confidentiality: Obligations regarding transaction confidentiality and company information

11. Notices: Process for formal communications between parties

12. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement

What sections are optional to include in a Sale Of Shares Agreement?

1. Conditions Precedent: Used when completion is subject to specific conditions being met, such as regulatory approvals

2. Price Adjustment: Include when purchase price may be adjusted based on accounts or other factors

3. Non-Competition: Required when seller needs to be restricted from competing post-sale

4. Tax Covenant: Include for detailed tax-related warranties and indemnities

5. Break Fee: Used when parties want to specify compensation if the deal fails

6. Earn-out Provisions: Include when part of purchase price is contingent on future performance

7. Vendor Financing: Required when seller is providing financing for the purchase

8. Tag-Along/Drag-Along Rights: Include for partial sales where remaining shareholders' rights need protection

What schedules should be included in a Sale Of Shares Agreement?

1. Share Details: Details of shares being sold including share certificates numbers and share history

2. Company Information: Key company details including registration number, registered office, directors, etc.

3. Warranties: Detailed warranties about the company, its business and assets

4. Latest Accounts: Copy of the company's most recent financial statements

5. Properties: Details of company's real estate assets if material to the transaction

6. Intellectual Property: List of company's IP rights if material to the transaction

7. Material Contracts: Summary of key commercial contracts

8. Completion Requirements: Detailed list of documents and actions required at completion

9. Form of Resignation Letters: Template resignation letters for departing directors if required

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions






























Clauses




























Relevant Industries

Financial Services

Technology

Manufacturing

Real Estate

Retail

Healthcare

Professional Services

Energy

Telecommunications

Consumer Goods

Industrial

Agriculture

Mining

Transportation

Education

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Risk Management

Corporate Secretarial

Investment

Board of Directors

Executive Management

Due Diligence

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Corporate Lawyer

Company Secretary

Finance Director

Managing Director

Business Development Manager

Investment Manager

Corporate Finance Manager

Mergers & Acquisitions Director

Risk Manager

Compliance Officer

Board Director

Financial Controller

Investment Banker

Private Equity Manager

Transaction Advisory Manager

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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