Document background
The Stock Repurchase Agreement is a crucial document used when a Saudi Arabian company decides to buy back its own shares from existing shareholders, whether for treasury stock, capital reduction, or as part of an employee exit arrangement. This document must strictly comply with Saudi Companies Law and Capital Market Authority (CMA) regulations, which impose specific requirements on share repurchase programs, including maximum holding limits, disclosure obligations, and fair value determinations. The agreement is particularly important in scenarios involving listed companies, employee stock ownership plans, or strategic corporate restructuring. It must address both regulatory compliance and practical implementation aspects, including Shariah compliance considerations where relevant. The document typically includes detailed provisions for valuation mechanisms, closing conditions, and regulatory approvals, making it essential for corporate governance and capital structure management.
