Document background
A Letter Of Intent To Sell Shares is commonly used in Pakistani corporate transactions as an initial step before entering into a definitive share purchase agreement. This document is typically employed when parties have reached a preliminary understanding regarding the sale of shares but need to formalize their intentions before proceeding with detailed due diligence and final documentation. Under Pakistani law, particularly considering the Companies Act 2017 and Securities Act 2015, this document helps establish the basic framework of the transaction while allowing flexibility for further negotiation. It includes essential elements such as the proposed purchase price, number of shares, exclusivity periods, and confidentiality provisions. While most provisions are non-binding, certain elements like confidentiality and exclusivity can be made binding. The document is particularly important in the Pakistani context where regulatory compliance and formal documentation of intentions are crucial for corporate governance.
