Document background
The Sale of Equity Agreement is a crucial document used in Malaysian corporate transactions when transferring ownership of company shares or equity interests. It is essential for both private and public company transactions, though specific requirements may vary. The agreement must comply with Malaysian legislation, particularly the Companies Act 2016 and relevant securities laws. This document is typically used when shareholders wish to sell their stake in a company, during corporate restructuring, or in merger and acquisition scenarios. The Sale of Equity Agreement includes detailed provisions covering purchase price, payment terms, representations and warranties, conditions precedent, completion mechanics, and post-completion obligations. It also addresses regulatory requirements, tax implications, and necessary corporate approvals under Malaysian law.
