Document background
The Shareholder Termination Agreement is a crucial document used when a shareholder exits a company in the Philippines, whether through voluntary departure, retirement, or mutual agreement. This document becomes necessary when changes in ownership structure occur, requiring careful consideration of the Revised Corporation Code of the Philippines, Securities Regulation Code, and tax laws. It typically includes comprehensive details about share valuation, payment terms, confidentiality obligations, and potential non-compete provisions. The agreement must comply with Philippine corporate law requirements and often requires supporting documentation such as board resolutions and regulatory filings. It serves to protect all parties' interests and provide a clear framework for the termination process, helping prevent future disputes and ensuring a smooth transition of ownership.
