Document background
The Transfer of Shares Agreement is a crucial legal document used in Saudi Arabia when ownership of company shares needs to be transferred between parties. It is essential for various business transactions, including partial or complete business sales, corporate restructuring, and investment deals. The agreement must comply with the Saudi Companies Law, Capital Market Authority regulations (for listed companies), and Sharia principles. It typically includes detailed provisions about the transfer price, payment terms, warranties, and various conditions precedent, particularly regarding regulatory approvals. The document is especially important given Saudi Arabia's complex regulatory environment and the need for specific approvals for certain types of transfers, particularly those involving foreign investors. This agreement serves as both a legal record of the transaction and a roadmap for its execution, ensuring all necessary steps are properly documented and completed.
