Document background
A Share Buyback Agreement is utilized when a Singapore company wishes to repurchase its own shares from existing shareholders. This document is crucial for corporate restructuring, capital management, or shareholder exit scenarios. The agreement must comply with Singapore's Companies Act 1967, which limits buybacks to 20% of shares in any financial year and requires director solvency statements. For listed companies, SGX regulations impose additional requirements regarding equal treatment, disclosure, and market conduct. The document typically includes purchase terms, warranties, conditions precedent, and completion mechanics.
