Document background
The Share Transfer Agreement Between Shareholders is a crucial document used in Nigerian corporate practice when one shareholder wishes to transfer their shares to another existing shareholder. This agreement is essential for companies registered under Nigerian law and must comply with the Companies and Allied Matters Act (CAMA) 2020, along with other relevant legislation. It is commonly used in situations where shareholders wish to exit partially or fully from their investment, restructure their shareholding, or transfer shares as part of a broader corporate reorganization. The document typically includes detailed provisions about the transfer price, payment terms, warranties, and various conditions that must be met before the transfer can be completed. It also addresses tax implications, regulatory requirements, and necessary corporate approvals. The agreement serves to protect both parties' interests and ensures a clear record of the transaction for corporate and regulatory purposes.
