A shareholder wants out. Sometimes amicably, sometimes not. Either way the company still has to run, staff still have to be paid, and the bank still expects the guarantee to be honoured.
The conversation focuses entirely on price. What gets overlooked is everything attached to that person — the director loan, the personal guarantee, the client relationships, the intellectual property they created, the confidential information they will take with them.
Money changes hands, shares transfer, and the release everyone assumed was complete turns out to cover only the shares.
Shareholder Exit and Buy-Out Documentation
Documentation for a shareholder's exit — share transfer or buy-back, the valuation basis, payment terms including any deferral, release of guarantees and director loans, resignation from office, restrictive covenants, confidentiality, and a mutual release covering everything arising from the relationship.
Your Vision, Backed by the Right Legal Support
You build the business. We help you protect it.
Picture a clean break. Shares transferred, guarantees released, loans settled, board changed, restrictive covenants agreed, and a mutual release both sides have signed. The company moves on and the file closes.
Who this service is for
This Is For You If…
Companies buying out a departing shareholder
Shareholders exiting a business they helped build
Remaining shareholders needing a founder's departure documented properly
Companies exercising a buy-back or a compulsory transfer
Parties whose shareholders agreement contains exit provisions to be applied
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What we will do for you
This is what we will do for you
Check what the constitution and any shareholders agreement already require
Advise on whether a transfer, buy-back or capital reduction is the right route
Document the price, payment terms and any deferred or contingent element
Deal with guarantees, director loans, office holdings and company property
Draft restrictive covenants and a mutual release, and complete the filings
What’s Included
What’s Included in our service for you
Review of the constitution and shareholders agreement exit provisions
Advice on transfer, buy-back or capital reduction
Exit agreement with price and payment terms documented
Guarantee, director loan and office holding resolved
Restrictive covenants, mutual release and statutory filings
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Why Choose Legal That Works?
Why Choose Us To Assist You?
Digital-first
No office visit required—review and sign online
Transparent fees
Fixed price, no billing surprises
Deep experience
Various contracts across industries
Accessible
Our client portal keeps you informed
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We've Helped
You Need To Act Now
Important: Limited Slots
Leverage sits with whoever is still needed. Once shares have transferred, obtaining a release or a covenant becomes a request rather than a term of the deal.
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Nothing to Lose. Everything to Protect.
No Surprises. No Guesswork. Just Legal That Works.
Before anything starts, we speak with you to understand your business and make sure the service is the right fit. If it is not, we will say so upfront. No pressure. No wasted time. We only take on matters we are confident we can deliver with quality. That is why business owners trust us to get it right.
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Frequently Asked Questions
What is Legal That Works?
Legal That Works is a business and organisation oriented legal service designed by Messrs Akmal Saufi & Co (the firm that has brought the widely known legal consumer services brand ASCOLAW). We specifically help business owners and organisation leadership to navigate Malaysia’s legal terrain to achieve their commercial goal.
What if I’m not sure what legal service I need?
No problem. Most business owners aren’t legal experts! Just reach out. Our team will guide you to the right service or help you understand your options—without jargon or upselling.
How should the shares be valued?
By whatever the shareholders agreement says. Where it is silent, the basis has to be negotiated, and that is usually the hardest part of the exit.
Can the company buy its own shares?
Sometimes, subject to statutory requirements including solvency. We will advise whether a buy-back is available and appropriate.
What about a personal guarantee given to the bank?
The bank has to agree to release it — the shareholders cannot do it between themselves. This needs handling before completion, not after.
Can we stop them competing with us?
Restrictive covenants are enforceable only within limits under Malaysian law. We will draft to give you the best protection actually available.
What if the departing shareholder will not cooperate?
Then we look at the compulsory transfer provisions, if any, and at your options where there are none. Either way the position needs assessing early.
Who will be helping me?
All our services are delivered by our licensed lawyers under the Malaysian Bar with proven experience across industries. You’ll work with a real legal team, not chatbots or generic customer support.
