Document background
The Purchase Of Shares Agreement is a crucial document used in corporate transactions within Saudi Arabia when one party wishes to acquire ownership in a company through the purchase of shares from existing shareholders. This agreement is essential for both private and public company transactions, though different regulations apply to each. The document must comply with Saudi Companies Law, Capital Market Authority regulations for listed companies, and where applicable, foreign investment restrictions under Saudi law. The agreement typically includes detailed provisions about the transaction structure, purchase price mechanisms, warranties about the company's condition, and various conditions that must be met before completion. It's particularly important to note that such agreements in Saudi Arabia must consider additional regulatory requirements such as Ministry of Commerce approvals and, in certain cases, competition law clearances. The document serves as the primary record of the transaction terms and the parties' obligations, making it a critical reference point for all stakeholders involved in the share transfer process.
