Document background
The Equity Buyback Agreement is a crucial document used when a Belgian company decides to repurchase its own shares from existing shareholders. This transaction type is specifically regulated under the Belgian Code of Companies and Associations (BCCA), requiring strict compliance with capital maintenance rules, shareholder approval thresholds, and financial assistance restrictions. The agreement becomes necessary in various scenarios, including capital structure optimization, excess cash utilization, or shareholder exit facilitation. It must detail the purchase price determination, payment mechanisms, completion requirements, and necessary warranties while ensuring compliance with both corporate and securities laws. For listed companies, additional considerations regarding market abuse regulations and stock exchange rules must be incorporated. The document serves as the primary record of the transaction terms and the parties' obligations, incorporating all necessary provisions to ensure a legally compliant share buyback under Belgian law.
