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Membership Interest Transfer Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Membership Interest Transfer Agreement

"I need a Membership Interest Transfer Agreement for the sale of 60% membership interest in our Dubai-based technology company to a foreign investor, with completion scheduled for March 2025, including specific provisions for regulatory approvals and technology asset transfer."

Document background
The Membership Interest Transfer Agreement serves as the primary legal instrument for transferring ownership interests in UAE companies, whether wholly or partially. This document is essential when shareholders wish to sell their stakes, during corporate restructuring, or in merger and acquisition scenarios. It must comply with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and other relevant regulations, particularly regarding foreign ownership restrictions and local partner requirements. The agreement typically includes detailed provisions on transaction structure, valuation, conditions precedent, warranties, and completion mechanics. It's particularly important in the UAE context due to specific requirements for corporate documentation, notarization, and regulatory approvals, especially in regulated sectors or when involving foreign investors.
Suggested Sections

1. Parties: Identification of the Transferor, Transferee, and the Company whose interests are being transferred

2. Background: Context of the transaction, current ownership structure, and purpose of the transfer

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Sale and Purchase: Core transaction terms including the percentage/amount of membership interest being transferred

5. Purchase Price: Consideration amount, payment terms, and payment mechanics

6. Completion: Timing and mechanics of the transfer completion, including required actions and deliverables

7. Conditions Precedent: Conditions that must be satisfied before the transfer can complete

8. Seller's Warranties: Representations and warranties from the transferor regarding ownership, authority, and company status

9. Buyer's Warranties: Representations and warranties from the transferee regarding authority and capability to complete the purchase

10. Pre-Completion Obligations: Parties' obligations between signing and completion

11. Confidentiality: Obligations regarding transaction confidentiality and company information

12. Notices: Process and requirements for formal communications between parties

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate provisions including entire agreement, amendments, and severability

Optional Sections

1. Tag-Along Rights: Include when existing shareholders are to have rights to join in the sale

2. Drag-Along Rights: Include when majority shareholders need the right to force minority shareholders to join the sale

3. Non-Competition: Include when the transferor needs to be restricted from competing post-transfer

4. Management Provisions: Include when the transfer affects management rights or board composition

5. Regulatory Compliance: Include when transfer requires specific regulatory approvals (e.g., for regulated industries)

6. Tax Indemnities: Include when specific tax risks need to be allocated between parties

7. Earn-out Provisions: Include when part of the purchase price is contingent on future performance

8. Foreign Ownership Compliance: Include when transfer involves foreign owners and specific UAE foreign ownership restrictions apply

Suggested Schedules

1. Company Information: Details of the company including corporate registration, licenses, and ownership structure

2. Membership Interest Details: Specific details of the membership interest being transferred

3. Purchase Price Calculation: Detailed breakdown of the purchase price calculation if complex

4. Completion Deliverables: List of all documents and items to be delivered at completion

5. Company Accounts: Recent financial statements and management accounts

6. Material Contracts: List and/or copies of important company contracts

7. Required Consents: List of third-party and regulatory consents required

8. Warranties: Detailed warranties and any specific disclosures against them

9. Form of Transfer Instruments: Forms of legal documents required to effect the transfer under UAE law

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



















































Clauses







































Relevant Industries

Financial Services

Real Estate

Manufacturing

Technology

Healthcare

Retail

Professional Services

Construction

Energy

Hospitality

Trading

Media and Entertainment

Transportation and Logistics

Education

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Corporate Secretariat

Board of Directors

Executive Management

Investment

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Lawyer

Legal Director

Company Secretary

Head of Mergers & Acquisitions

Investment Director

Business Development Manager

Compliance Officer

Finance Director

Managing Partner

Board Member

Commercial Director

Corporate Governance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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