Document background
The Buyout Agreement serves as the primary transaction document for business acquisitions in Malaysia, structured in compliance with the Companies Act 2016 and other relevant Malaysian legislation. This document is essential when one entity intends to acquire another business, whether through asset purchase or share transfer. It comprehensively addresses all aspects of the transaction, including purchase price, payment mechanisms, warranties, representations, and conditions precedent. The agreement should be used whenever there is a complete or substantial acquisition of a business, requiring careful consideration of Malaysian corporate law requirements, tax implications, and regulatory approvals. It provides legal protection for both parties and creates a clear framework for executing the transaction, managing risks, and ensuring a smooth transfer of ownership.
