Document background
The Company Share Transfer Agreement is a crucial document used in Saudi Arabia when transferring ownership of shares in a company from one party to another. It is essential for both private and public company transactions, though different rules apply to each. The agreement must comply with the Saudi Companies Law of 2015, Ministry of Commerce regulations, and where applicable, Capital Market Authority requirements. This document becomes necessary during various corporate scenarios including business exits, restructuring, succession planning, or strategic investments. It typically includes detailed provisions about the transfer price, payment terms, warranties about the company's condition, and specific completion requirements. The agreement must account for unique aspects of Saudi law, including Sharia compliance, foreign investment restrictions, and local corporate governance requirements. It serves as the primary document evidencing the transfer of ownership and protecting both parties' interests in the transaction.
