Document background
A Share Buyback Agreement is a crucial document used when a Danish company decides to repurchase its own shares from existing shareholders. This transaction type is regulated primarily under the Danish Companies Act (Selskabsloven) and must comply with specific capital maintenance rules and corporate governance requirements. The agreement is commonly used for various business purposes, including returning excess capital to shareholders, adjusting the company's capital structure, or implementing employee exit arrangements. The document covers essential elements such as purchase price determination, payment mechanisms, regulatory compliance requirements, and necessary corporate approvals. For listed companies, additional considerations under the Danish Capital Markets Act and EU Market Abuse Regulation must be addressed.
