Document background
The Shareholder Sale Agreement is a crucial document used in Nigerian corporate transactions when one or more shareholders wish to sell their shares to another party. It is essential for both private and public companies operating under Nigerian law, particularly in compliance with CAMA 2020 and the Investment and Securities Act 2007. The agreement becomes necessary when shareholders decide to exit their investment, during corporate restructuring, or in strategic investment scenarios. It typically includes comprehensive details about the transaction structure, share valuation, payment terms, warranties, and representations, while incorporating specific Nigerian regulatory requirements such as corporate approvals, stamp duty obligations, and where applicable, foreign investment provisions. This document is particularly important as it provides legal certainty and protection for both parties while ensuring the transaction meets all local regulatory requirements.
