Document background
The Stock Acquisition Agreement is a fundamental transaction document used in corporate acquisitions where ownership of a company changes hands through the purchase of shares rather than assets. This agreement is particularly tailored for the Hong Kong legal framework, incorporating requirements under the Companies Ordinance, Securities and Futures Ordinance, and Stamp Duty Ordinance. It is typically used in private M&A transactions where one party wishes to acquire ownership of a company by purchasing its shares from existing shareholders. The document comprehensively covers all aspects of the share transfer, including purchase price mechanisms, conditions precedent, warranties about the company's condition, indemnities, and completion procedures. It serves as the primary reference point for the rights and obligations of all parties involved in the transaction and is crucial for both legal compliance and commercial certainty in Hong Kong corporate transactions.
