Document background
The Shareholder Separation Agreement is a crucial document used when a shareholder decides to exit a company in the Philippines, whether due to retirement, strategic disagreements, or other personal or business reasons. This agreement is essential for companies operating under Philippine jurisdiction and must comply with the Revised Corporation Code of the Philippines, Securities Regulation Code, and relevant tax laws. It typically includes detailed provisions for share valuation, payment terms, confidentiality obligations, and non-compete restrictions. The document serves to protect both the departing shareholder and the company by clearly defining rights, obligations, and the process for completing the separation. It's particularly important in closely-held corporations and family businesses where shareholder transitions need careful handling to maintain business continuity and stakeholder relationships.
