The previous paragraph leads to the conclusion that any agreement between the shareholders and the company is concluded in order to protect the interests of the investor and the company. To have the validity of all these agreements, it is always advisable that all these agreements be stamped and notarized. As part of the private placement procedure, the new shareholder receives a private placement memorandum once the conditions have been met. This memorandum contains a description of the investment and is usually accompanied by a share subscription contract. 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. Contact us, your florida business attorney, to help you understand the difference between the share purchase agreement and the shareholder agreement and help you execute them. The subscription contract is very similar to the term sheet and does not contain so much new things. Some things are explained in more detail, like guarantees and compensations, but it is quite simple. Don`t forget to add the investors` amounts and their amounts in the clause called subscription. Sometimes investors have to sign separate subscription lists, but in this version, the subscription is done by signing the subscription contract.
Also known as a shareholders` agreement, the shareholders` agreement aims to protect the minority or majority of shareholders depending on the type of wording. The purpose of this document is to create a fair relationship between shareholders. The agreement generally describes in detail the rights and obligations of each shareholder and the legitimate pricing of shares. The shareholders` agreement should always be signed by all shareholders of the company. When new shareholders enter the company, they must sign the existing agreement by signing a compliance agreement (which is attached to the shareholders` agreement as a schedule). One of the differences between the share subscription contract and the shareholders` agreement is that the shareholder agreement is more detailed. The share subscription contract is usually simple and simple, but it can sometimes contain detailed conditions on guarantees and compensation for shareholders. The main difference between a share purchase agreement and a share subscription agreement is that, in a share purchase agreement, the consideration is credited to the account of the seller of the share (who is usually an investor or promoter of the company) who wishes to sell his stake in the company. Whereas in the case of a share occupancy contract, the consideration paid by the purchaser of the shares is credited to the company`s account, since the company issues additional shares at a predetermined price….