Document background
A Stock Cancellation Agreement is a crucial document used in Nigerian corporate transactions when a company needs to reduce its share capital by cancelling existing shares. This agreement is commonly utilized in scenarios such as corporate restructuring, share buybacks, or implementing employee exit arrangements. The document must strictly comply with the Companies and Allied Matters Act 2020 and other relevant Nigerian regulations, including obtaining necessary corporate and regulatory approvals. The agreement typically covers essential elements such as share identification, consideration details, tax implications, and required regulatory filings with the Corporate Affairs Commission. It's particularly important in private companies and listed entities, though the requirements and complexity may vary depending on the company's status and the transaction's nature.
