Document background
The Small Business Stock Purchase Agreement is a crucial document used when transferring ownership of shares in a small business within Malaysia. This agreement is essential for transactions where one party wishes to sell their ownership stake to another party, whether it's a complete or partial transfer of shares. It's particularly relevant for small and medium-sized enterprises (SMEs) operating under Malaysian jurisdiction, ensuring compliance with the Companies Act 2016 and other relevant Malaysian legislation. The document typically includes detailed provisions about the sale price, payment terms, warranties about the business's condition, representations from both parties, and specific conditions that must be met before the transfer can be completed. It's designed to protect both the seller's and buyer's interests while providing a clear framework for the transaction, including necessary due diligence requirements and post-completion obligations.
