Document background
The Share Purchase Agreement Between Shareholders is a crucial document used in Pakistani corporate transactions when existing shareholders wish to transfer ownership stakes among themselves. This agreement is essential for companies registered under Pakistani law, particularly private limited companies, where share transfers need to be documented and executed in compliance with the Companies Act 2017 and Securities Act 2015. The document serves multiple purposes: it records the terms of the share transfer, protects both parties' interests, ensures regulatory compliance, and provides clarity on warranties, representations, and post-completion obligations. It becomes particularly important in scenarios involving significant ownership changes, family business transitions, or strategic realignment of shareholder interests, and must incorporate specific requirements of Pakistani corporate law, including necessary board approvals and regulatory filings with the Securities and Exchange Commission of Pakistan (SECP).
