Document background
A Share Buyback Agreement is a crucial document used when a Malaysian company wishes to repurchase its own shares from existing shareholders. This practice is regulated under the Companies Act 2016 and, for listed companies, the Capital Markets and Services Act 2007. The document becomes necessary when a company aims to reduce its share capital, manage its capital structure, or return excess cash to shareholders. The agreement must incorporate specific Malaysian legal requirements, including solvency statements, corporate approvals, and compliance with regulatory frameworks. It's particularly important to note that share buybacks in Malaysia require careful attention to both statutory requirements and corporate governance principles, making this agreement essential for documenting the transaction's terms, conditions, and compliance measures.
