Document background
A Term Sheet Share Purchase Agreement is a crucial preliminary document used in Malaysian corporate transactions to establish the framework for share acquisitions. It is typically prepared after initial commercial terms are agreed upon but before detailed due diligence and definitive agreements are undertaken. The document outlines key transaction elements including price, payment terms, conditions precedent, and timeline, while usually maintaining non-binding status except for specific provisions. Under Malaysian jurisdiction, it must align with the Companies Act 2016, Capital Markets and Services Act 2007, and other relevant regulations. This document type is particularly important in complex transactions where parties need to confirm their understanding of key terms before investing significant resources in due diligence and detailed documentation.
