Share Subscription Agreement
A Share Subscription Agreement is a document that serves as a contract between a company and investor for the issuing of shares.
4.3 (16 reviews)
Last updated October 22, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
A Share Subscription Agreement is a document that serves as a contract between a company and investor for the issuing of shares. The agreement details the terms and conditions of the sale of shares by a company to an investor. This type of of share agreement is typically used when a private company is going through a round of capital raising. Selling shares in a company is an effective method of raising capital, particularly in the early stages of establishment. If your company isn't issuing new shares and rather an investor is purchasing off an existing shareholder, a purchase and sell agreement may be better suited.
This document will also set out representations of both the company and the subscriber of the shares. These representations seek to confirm that both parties have the authority to enter into the agreement and are doing so legally.
Whether you’re the company issuing shares or an investor, it is recommended that you have a lawyer look over your agreement.
The Legal Risk Score of a Share Subscription Agreement Template
Our legal team have marked this document as medium risk considering:
- The fact that companies may need to tailor it to suit their internal procedures and constitution.
- The regulatory requirements that must be carried out after executing this document to ensure it is effective and avoid ASIC penalties.
Share Subscription Agreement Checklist
Complete your free Share Subscription Agreement with our checklist
Get a lawyer to review the agreement
A lawyer can help ensure that you carry this out according to any share issue provisions in the replaceable rules, company constitution or shareholders agreement.
Carry out the issue of shares
This is a complex process that should only be done with the assistance of a lawyer.
Use this Share Subscription Agreement If:
- You’re a company looking to issue new shares to an investor
- You’re investing in a company who is issuing you shares
What does this Share Subscription cover?
- Amount of shares issued
- Subscription price
- Terms and conditions of sale
- Company representations
- Subscriber representations
- Reliance on representations
- Confidentiality
Further Information:
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