If your company is looking to take a stake, you will need a share subscription agreement to issue new shares to your investors and enter the details of your relationship with investors. The document describes the parties to the transaction, the description of the shares put up for sale, the purchase price (consideration), the guarantees and assurances of the parties, the requirements before and after completion, etc. A share subscription contract defines the elements of the investment and how it will work. You must provide various details, including the number of shares issued if the shares are subject to any conditions, the reference price and the date of issue. Sometimes you might want to change the relative ownership shares at the same time as the sale by subscribing to the newly issued shares. For example, you can buy the shares of an outgoing shareholder and then invest additional equity to get a majority stake. In this case, you need a share purchase and subscription contract. If there is no new issue and the buyer acquires the shares of an existing shareholder, a share purchase agreement is more appropriate. Our fixed-fee packages for share subscription agreements start at $1450 + GST. These include an agreement based on your requirements, telephone consultations with a Sprintlaw lawyer, and a free amendment to the final draft that we provide to you. A share subscription agreement protects the company from a last-minute withdrawal of investors, can join the shareholders` agreement and clearly describes the terms of the investment in order to avoid confusion, including the limitation of the company`s liability with respect to the investment.
It also protects the shareholder. It is intended for smaller and simpler transactions: the introduction of a family member into a company, an officer or director, the appointment of a new non-executive member of the board of directors, who will benefit from a small stake, or an existing shareholder to invest additional equity. Like any contract that removes the purchase of assets, a share subscription agreement requires investors to purchase new shares issued by the company and defines the company`s investment promises and responsibilities. Change of terms. If you sell shares, it will prevent an investor from changing their mind and last-minute conditions. An effective share subscription agreement sets out the details of a transaction, including prices and schedules. If you are an investor, you can protect yourself from the last minute This legal document also defines the responsibilities of both parties. These assurances are intended to confirm that both parties have the power to enter into the agreement and are doing so legally. This agreement applies to the situation in which new shares are issued – the buyer does not buy the shares held by another person.
A share subscription agreement is an agreement between a company and investors to sell shares at a fixed price to investors. This is done simply by offering new shares to investors who will become shareholders of the company at the end of the transaction. If a company wishes to raise capital, it can do so by issuing shares that can be acquired by private placement or public offering. You can find many free legal templates online that can help you get a stock subscription contract. While many of these templates can be displayed for free, a small fee may be required to customize and download them. The subscription is for cash, with two-step payments. The final price to be paid depends on the company`s profits in the next set of accounts….