Document background
The Business Shares Agreement is a crucial document used in Nigerian corporate transactions to formalize and regulate the transfer of shares between parties. It is essential when any ownership change occurs in a Nigerian company, whether through partial or complete sale of shares. The agreement must comply with the Companies and Allied Matters Act (CAMA) 2020 and other relevant Nigerian legislation, including sector-specific regulations and local content requirements where applicable. It typically includes detailed provisions on share valuation, payment terms, warranties, representations, conditions precedent, and completion mechanics. The document is particularly important in protecting both buyers' and sellers' interests by clearly defining their rights, obligations, and the process for executing the share transfer. It may also need to address specific requirements for foreign investors under the Nigerian Investment Promotion Commission Act.
