Document background
The Share Transfer Agreement Private Company is a crucial legal document used in Pakistan when transferring ownership of shares in a private limited company. This agreement is essential for documenting the terms and conditions of share transfers, ensuring compliance with the Companies Act 2017 and other relevant Pakistani legislation. It becomes necessary when shareholders wish to sell or transfer their shareholding to other parties, whether existing shareholders or new investors. The document typically includes details about the shares being transferred, purchase price, payment terms, warranties about the shares and the company, and completion mechanics. It must be properly executed and stamped according to Pakistani law, and often requires registration with the Securities and Exchange Commission of Pakistan (SECP). The agreement serves to protect both parties' interests and provides clear evidence of the transfer transaction for corporate and regulatory purposes.
