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Share Purchase Agreement Short Form for United Arab Emirates

Share Purchase Agreement Short Form Template for United Arab Emirates

A concise legal agreement governed by UAE law that documents the sale and purchase of shares in a private company. This document sets out the essential terms of the transaction including the identity of the parties, purchase price, completion mechanics, and basic warranties. It is designed for straightforward share transfers where extensive warranties and indemnities are not required. The agreement incorporates key requirements under UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and ensures compliance with local ownership restrictions and regulatory requirements.

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What is a Share Purchase Agreement Short Form?

The Share Purchase Agreement Short Form is specifically designed for uncomplicated share transfers in the UAE market. This streamlined version is particularly suitable for transactions involving private companies where the parties have conducted limited due diligence or where the transaction value or risk profile doesn't warrant an extensive agreement. The document complies with UAE Federal Law No. 32 of 2021 and other relevant regulations, including foreign ownership restrictions where applicable. It includes essential provisions for share transfers, basic warranties, and completion mechanics while omitting complex earn-out structures, detailed warranties, or extensive indemnities found in long-form versions. This agreement is commonly used in internal restructurings, small business acquisitions, or transactions between related parties where comprehensive protections are not necessary.

What sections should be included in a Share Purchase Agreement Short Form?

1. Parties: Identification of the Seller(s) and Buyer(s) with full legal names and addresses

2. Background: Context of the transaction, including description of the target company and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including shares being sold, purchase price, and payment terms

5. Completion: Timing, location, and mechanics of closing the transaction

6. Seller's Warranties: Basic warranties regarding share ownership, authority to sell, and company status

7. Buyer's Warranties: Basic warranties regarding authority and capacity to purchase

8. Confidentiality: Obligations regarding transaction confidentiality and announcements

9. Notices: Process and contact details for formal communications between parties

10. Governing Law and Jurisdiction: Specification of UAE law governance and jurisdiction for disputes

11. Execution: Signature blocks and execution formalities

What sections are optional to include in a Share Purchase Agreement Short Form?

1. Conditions Precedent: Used when completion is subject to specific conditions being satisfied, such as regulatory approvals

2. Purchase Price Adjustment: Include when price may be adjusted based on completion accounts or other metrics

3. Non-Competition: Required when seller needs to be restricted from competing post-completion

4. Tax Covenant: Include when specific tax arrangements or indemnities are needed

5. Pre-Completion Conduct: Used when there's a gap between signing and completion requiring regulation of company conduct

6. Further Assurance: Include when additional actions may be needed post-completion

7. Assignment: Include when transfer rights need to be specifically addressed

What schedules should be included in a Share Purchase Agreement Short Form?

1. Details of the Company: Corporate information including registration number, shareholders, directors

2. Details of the Shares: Specific description of shares being transferred including share numbers and certificates

3. Completion Requirements: Detailed list of documents and actions required at completion

4. Form of Transfer Instrument: Template share transfer forms compliant with UAE requirements

5. Warranties: Detailed warranties if not included in main agreement

6. Properties: Details of company's real estate assets if material to transaction

7. Intellectual Property: Schedule of material IP rights if relevant to transaction

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Stock Agreement

Cost

Free to use

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