Dubai: The Dubai Chamber of Commerce and Industry, in association with DLA Piper Middle East LLP, recently organised a workshop under the banner, “Practical Aspects of Share Purchase Agreement” at the Chamber premises.
The workshop, which was attended by Dubai Chamber members, business representatives, lawyers and legal professionals, investors, business owners and corporate counsels, dealt with the topics of understanding the main issues involved in the allocation of risks and liabilities related to the sale and purchase of shares by businesses.
Jehad Kazim, Director, Legal Services, Dubai Chamber, stated that while dealing with the sale and purchase of shares, it is important that the agreement be properly drafted, particularly with respect to the seller’s obligation to sell and the buyer’s obligation to purchase the shares while also considering the risks and liabilities involved in the deal.
She added that with the proper professional guidance, buyers and sellers can minimise such risks in a manner that makes them commercially comfortable and safeguards their respective positions. This also goes out to enhance the reputation of the business community while promoting the investor-friendly environment of the emirate.
Best practices
The workshop, which was conducted by Murad Abida, Partner, Head of Corporate Middle East, and Ghassan Y. Shuhaibar, Senior Legal Consultant, DLA Piper Middle East LLP, discussed the main components of share purchase agreements and warranties and limitations on liability.
Murad Abida, Partner, Head of Corporate Middle East, DLA Piper Middle East LLP, said, “We are always supporting and advising our clients in accordance with best international commercial and legal practices, including putting together for them a full suite of transaction documents that capture the details of the agreed terms between the parties thus ensuring a successful closing of the transaction.”
Ghassan Y. Shuhaibar, Senior Legal Consultant, DLA Piper Middle East LLP, added, “The importance of a carefully drafted and well balanced transactional document should not be overlooked, as it sets out the primary level of protection for both buyers and sellers in the sale and purchase of shares. In turn, a well-drafted share purchase agreement sets out the road map for a transaction, and should serve to free the relevant parties of any ambiguity with regard to their respective rights, obligations and responsibilities during the life cycle of the sale and purchase.”
