Document background
The Shareholder Purchase Agreement is a crucial document used in Saudi Arabia when transferring ownership of shares in a company from one party to another. It serves as the primary transaction document in share acquisitions, whether for partial or complete ownership transfers. This agreement must comply with Saudi Companies Law, Capital Market Authority regulations (for listed companies), and Sharia principles. It typically includes detailed provisions on purchase price determination, payment terms, warranties and representations, conditions precedent (including regulatory approvals), and completion mechanics. The document is particularly important in the Saudi context due to specific local requirements such as Ministry of Commerce registration, foreign investment restrictions where applicable, and Sharia-compliant transaction structuring. It provides essential protection for both buyers and sellers while ensuring the transaction's enforceability under Saudi law.
