Document background
The Memorandum of Understanding Share Purchase is a crucial preliminary document used in Philippine corporate transactions to establish the initial framework for a potential share acquisition. It serves as a roadmap for the transaction, documenting the parties' intentions and key commercial terms while maintaining flexibility for detailed negotiations. This document is particularly important in the Philippine context, where corporate transactions must navigate specific regulatory requirements under the Revised Corporation Code, Securities Regulation Code, and potentially the Foreign Investments Act. It typically precedes the definitive share purchase agreement and includes provisions for due diligence, transaction structure, preliminary valuation, and key conditions. While generally non-binding (except for specific provisions like confidentiality), it demonstrates serious intent and commitment to the negotiation process while protecting both parties' interests during the preliminary stages of the transaction.
