Share Buyback Agreement

This Agreement can be used by a company to buy back shares from a particular shareholder.

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Last updated January 30, 2025

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Suitable for Australia

Share Buyback Agreement

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What is a share buyback agreement?

A share buyback agreement is a legal contract where a company agrees to repurchase shares from a shareholder at an agreed price, resulting in the cancellation of those shares.
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When should you use a share buyback agreement?

Use a share buyback agreement when a company wants to formally purchase shares back from a shareholder, often to reduce share capital or as part of an exit arrangement.
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What should be in a share buyback agreement?

It should include the number of shares, buyback price, completion procedure, warranties, termination of rights, and general terms like governing law and notices.
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Frequently asked questions

Who can use this agreement?

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View Sample Share Buyback Agreement

Share Buyback Agreement
risk level indicator at High level

The Legal Risk Score of a Share Buyback Agreement Template is High

Our legal team have marked this document as high risk considering:

  • There is a possibility that the Shareholder might not have clear and unencumbered ownership of the shares, which could lead to legal complications after the transaction is completed.
  • The document does not explicitly outline the consequences or remedies if either party fails to fulfill their obligations, leaving potential breaches of the agreement less manageable.
  • If section 257B of the Corporations Act is not followed, it can create liability for the company.

Users familiar with share buyback processes may find this document suitable, but should remain cautious about the potential for unaddressed issues.

Meet Our Users

Articles about Share Buyback Agreement

Share Buybacks: A Guide for Australian SMEs
By Berk Eker|Dec 2, 2025

Share Buybacks: A Guide for Australian SMEs

Is your company considering buying back its own shares? Check out our comprehensive guide or share buybacks, including pros, cons, and tax implications.

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5 Things to Know About Share Subscription Agreements

Expanding your business? Here's a quick guide to Share Subscription Agreements.

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By Raja Abbas|Jan 11, 2024

What Are Share Sale Agreements?

What Are Share Sale Agreements? This article explores everything you need to know about share sale agreements, including how to draft, negotiate and perfect share sale agreements.

Subscription vs Share Purchase Agreement
By Meru Sharma|Dec 2, 2025

Subscription vs Share Purchase Agreement

To raise capital or find new investors, businesses and startups might require a subscription agreement or a share purchase agreement. Find out more here.

What Is A Share Sale Agreement?
By Raja Abbas|Feb 7, 2024

What Is A Share Sale Agreement?

What Are Share Sale Agreements? This article explores everything you need to know about share sale agreements, including how to draft, negotiate and perfect share sale agreements.

Why your business needs a Shareholders Agreement
By Dominic Woolrych|May 25, 2015

Why your business needs a Shareholders Agreement

Learn about a shareholders agreement, what it includes and how it can be beneficial for your business.

When to Use a Shareholders' Agreement (2025 Update)
By Dominic Woolrych|Jan 7, 2025

When to Use a Shareholders' Agreement (2025 Update)

A Shareholders' Agreement protects both a company and its members by setting out the terms of ownership. Find out when to use one here.

Share Sale Contract: A Guide to Buying and Selling Company Shares (2025 Update)
By Mai Sarkissian|Jan 9, 2025

Share Sale Contract: A Guide to Buying and Selling Company Shares (2025 Update)

Learn how to protect your business interests in a share sale through understanding the key features of a share sale contract. 

Financial Assistance Under the Corporations Act
By Richard Yuen|Nov 21, 2025

Financial Assistance Under the Corporations Act

Companies can provide other entities with financial assistance if they comply with the rules outlined in the Corporations Act. Find out more here.

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