Document background
The Buy-Sell Agreement Cross Purchase is a critical document for UAE businesses with multiple owners who want to establish a clear framework for ownership transitions. This agreement, governed by UAE Federal Law No. 32 of 2021 and related regulations, is particularly important in the UAE business environment where careful consideration must be given to both local and foreign ownership requirements. The document specifies how remaining owners can directly purchase a departing owner's shares, detailing trigger events, valuation methods, and payment terms. It includes provisions for compliance with UAE commercial law, Department of Economic Development requirements, and where applicable, foreign ownership restrictions. The agreement typically requires coordination with life insurance policies and may need to address Sharia compliance depending on the parties' requirements.
