Document background
A Share Cancellation Agreement is utilized when a company needs to reduce its share capital through the cancellation of existing shares. This document is crucial in Singapore's corporate landscape, where strict capital maintenance rules apply under the Companies Act. The agreement typically includes details of the shares being cancelled, consideration (if any), completion mechanics, and necessary corporate and regulatory approvals. It's particularly important for corporate restructuring, capital reduction exercises, or implementing employee share buyback programs. The Share Cancellation Agreement must comply with Singapore's regulatory framework, including ACRA requirements and, where applicable, SGX listing rules.
