Document background
A Share Redemption Agreement is a crucial document used when a Philippine corporation wishes to repurchase its own shares from existing shareholders. This agreement is particularly relevant in scenarios such as corporate restructuring, implementation of exit mechanisms, or strategic capital management. The document must comply with the Revised Corporation Code of the Philippines and other relevant regulations, including specific requirements for maintaining capital adequacy and protecting creditor interests. It typically includes detailed provisions on valuation, payment terms, regulatory compliance, and completion mechanics. This type of agreement is commonly used in both private and public companies, though public companies must additionally comply with Securities and Exchange Commission requirements.
