Share subscription agreement

A share subscription agreement is a contract between the issuing company and the investor, setting out the price for a specified number of shares and the promise of the investor to buy that number of shares at the agreed price.

Learn more Get in touch

Share subscription agreement information

The investor may make several payments to the company over a defined period (known as ‘tranches’) or a lump sum payment for the shares.

When the agreement is concluded, the investor becomes a shareholder of the company and has the associated rights and liabilities.

The agreement may set out conditions precedent, including, for example, that the directors must pass a resolution approving the issue of shares before the agreement can come into force.

The agreement may also specify limitations on one or both parties, including a duty of confidentiality or a duty on the investor to refrain from investing in businesses that are in competition with the activities of the company.

If you are considering offering shares or investing in a company, it is important to seek legal advice before entering into an agreement. At Lawbase, we can assist in the creation of customised share subscription agreements to suit all sizes and types of company.

Get in touch

Fill in the form below and one of our team will be in touch. You can also phone 1300 149 140 during standard business hours.

  • This field is for validation purposes and should be left unchanged.

Related Legal Insights

Understanding the Advantages of a Non-Disclosure Agreement (NDA)

Non-Disclosure Agreements are an effective tool for safeguarding confidential information, in this article we cover everything you need to know about NDA's

Read more
The Importance of Due Diligence when Buying an Existing Business

Before purchasing an existing business it is important to carry out due diligence to assess the value, risks and potential of the business so that you are able to make an informed decision. In undertaking this process, an experienced lawyer can greatly help you navigate the legal complexities.

Read more
What happens to employee entitlements when a business is sold?

What happens to employee entitlements when a business is sold? There is much to consider when buying or selling a business. Of significant importance is, what happens to the employees of the enterprise once it is sold? The sale of a business can be a curious time for existing employees...

Read more
What is a vendor finance agreement?

What is a vendor finance agreement? Sellers (vendors) and purchasers of a business sometimes enter into a transaction which involves Vendor Finance. The vendor provides some of the funding required by the purchaser to buy the business – usually the purchaser pays a deposit or portion of the purchase price...

Read more
Important things to consider when buying a business

Important things to consider when buying a business If you are considering buying a business there are many things you need to do from a legal, financial and general business perspective.  Getting the right advice from the start is important. The structure of, and issues involved in, the sale are...

Read more