Document background
A Sale Of Shares Agreement is a crucial document used when transferring ownership of shares in a company from one party to another in Saudi Arabia. It is particularly important in mergers and acquisitions, corporate restructuring, and investment transactions. The agreement must comply with Saudi Arabian Companies Law, Capital Market Authority regulations (if applicable), and other relevant legislative requirements. The document typically includes detailed provisions about the shares being sold, purchase price, payment mechanisms, warranties about the company's condition, and various protections for both buyer and seller. For foreign investors, additional considerations regarding Foreign Investment Law compliance may be necessary. The agreement should be structured to ensure enforceability under Saudi law and, where required, compliance with Shariah principles.
