Shareholder Subscription Agreement
Legal document governing the **issuance of shares to investors** and defining their rights, obligations, and corporate governance.
Lawizer drafts agreements for startup funding, ensuring clarity on shareholding and protecting both company and investor rights.
Why a Subscription Agreement is Key for Funding
This agreement formalizes the capital investment, ensuring it is legally compliant and that the rights and obligations of the new shareholders are clear and enforceable, mitigating future disputes.
Key Protections & Benefits
Protects investor and company rights
Ensures clarity on shareholding, voting rights, and dividends
Legally enforceable in case of disputes
Drafting agreements for startup funding or corporate investments
Pre-Requisites for Drafting
To accurately define the terms of the investment and share issuance, the following details are essential:
Company and investor details
Number and type of shares
Rights, obligations, and exit clauses
Lawizer Deliverables
Drafting agreements for startup funding or corporate investments
Guidance on shareholding structure and rights
Frequently Asked Questions
It is an agreement that governs the issuance of shares to investors and defines their rights and obligations within the company.
It protects the investor's rights and ensures clarity on their shareholding, voting rights, and entitlement to dividends, making the investment legally secure.
The agreement covers the number and type of shares, the investor's rights and obligations, and crucial exit clauses.