Sample Share Allotment Agreement
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. A subscription agreement contains details of the purchase price for the sale of your company`s shares. It also contains the assurances and guarantees that each party gives to each other within the framework of the agreement. (For more information about subscription agreements.) Download the reference contract template 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. After the date of its establishment, the company must take steps to ensure that the investor`s name is registered in the register of members of the company (if the investor is not already a member of the company). This document is used by companies to raise capital from investors….