Document background
The Shareholder Buy Sell Agreement is a fundamental document for Malaysian companies seeking to establish clear protocols for share transfers and ownership succession. It becomes particularly crucial when shareholders want to maintain control over who owns the company while ensuring fair treatment for those who exit. The agreement operates within the framework of Malaysian corporate law, particularly the Companies Act 2016, and typically includes provisions for various scenarios such as shareholder death, disability, retirement, or voluntary exit. It details valuation methods, payment terms, and funding mechanisms, often through insurance policies or company reserves. This type of agreement is essential for business continuity planning and can help prevent disputes by providing clear procedures for share transfers and ownership changes.
