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Agreement for the Subscription of Shares

This agreement outlines the terms and conditions under which an investor subscribes for shares in a company. It is used when a company issues new shares to raise capital.

Updated 15d ago
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Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Website: {{website}}

AGREEMENT FOR THE SUBSCRIPTION OF SHARES

This Agreement for the Subscription of Shares (hereinafter referred to as "this Agreement") is made and entered into on this {{day}} day of {{month}}, {{year}} (the "Effective Date").

BETWEEN:

{{company_name}}, a company duly incorporated and registered under the Laws of {{country}}, with its registered office located at {{company_address}} (hereinafter referred to as "the Company").

AND

{{subscriber_name}}, an individual residing at {{subscriber_address}} / a company duly incorporated and registered under the Laws of {{country}}, with its registered office located at {{subscriber_address}} (hereinafter referred to as "the Subscriber").

WHEREAS:

A. The Company is duly authorised to issue a total of {{authorized_shares}} ordinary shares of {{currency}}{{share_nominal_value}} each (the "Shares").

B. The Subscriber desires to subscribe for, and the Company desires to issue to the Subscriber, a certain number of Shares on the terms and conditions set forth in this Agreement.

C. The subscription for the Shares will provide the Company with working capital for its business operations and expansion plans.

1. SUBSCRIPTION FOR SHARES

1.1 Subject to the terms and conditions of this Agreement, the Subscriber hereby agrees to subscribe for, and the Company hereby agrees to allot and issue to the Subscriber, {{number_of_shares}} ordinary shares in the capital of the Company (the "Subscription Shares").

1.2 The subscription price for each Subscription Share shall be {{currency}}{{subscription_price_per_share}} (the "Subscription Price").

1.3 The total subscription amount payable by the Subscriber to the Company for the Subscription Shares shall be {{currency}}{{total_subscription_amount}} (the "Total Subscription Amount").

2. PAYMENT OF SUBSCRIPTION PRICE

2.1 The Subscriber shall pay the Total Subscription Amount to the Company within {{payment_days}} days from the Effective Date of this Agreement.

2.2 Payment shall be made by way of {{payment_method}} to the Company's bank account, details of which shall be provided by the Company to the Subscriber.

3. ALLOTMENT AND ISSUANCE OF SHARES

3.1 Upon receipt of the Total Subscription Amount, the Company shall, within {{allotment_days}} days, allot and issue the Subscription Shares to the Subscriber.

3.2 The Company shall update its register of members to reflect the Subscriber's ownership of the Subscription Shares.

3.3 A share certificate for the Subscription Shares shall be issued to the Subscriber within {{certificate_days}} days of allotment.

4. REPRESENTATIONS AND WARRANTIES

4.1 The Company represents and warrants that:

(a) It is duly incorporated and validly existing under the laws of {{country}}.

(b) It has the corporate power and authority to enter into and perform its obligations under this Agreement.

(c) The Subscription Shares, when issued, will be fully paid and non-assessable.

4.2 The Subscriber represents and warrants that:

(a) It has the legal capacity and authority to enter into and perform its obligations under this Agreement.

(b) It is acquiring the Subscription Shares for its own account for investment purposes and not with a view to resale or distribution.

(c) It has conducted its own due diligence and made its own independent evaluation of the Company and the Subscription Shares.

5. GOVERNING LAW AND JURISDICTION

5.1 This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

5.2 Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by the courts of {{country}}.

6. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, whether written or oral, between the parties.

7. SIGNATURES

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

FOR AND ON BEHALF OF THE COMPANY:

_____________________________

Name: {{company_signatory_name}}

Title: {{company_signatory_title}}

Date: {{date}}

FOR AND ON BEHALF OF THE SUBSCRIBER:

_____________________________

Name: {{subscriber_signatory_name}}

Title: {{subscriber_signatory_title}}

Date: {{date}}

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