Document background
The Stock Repurchase Agreement is a crucial document used when a New Zealand company decides to buy back its own shares from existing shareholders. This transaction type is governed primarily by the Companies Act 1993 and must comply with specific requirements including board approval, solvency testing, and fair dealing provisions. The agreement is commonly used for various corporate purposes such as returning excess capital to shareholders, adjusting capital structure, or facilitating exit arrangements. It contains essential provisions addressing purchase price, payment mechanisms, representations and warranties, and completion procedures, while ensuring compliance with New Zealand's regulatory framework. The document is particularly important for both private and public companies implementing share buyback programs or managing shareholder exits.
