Subscription & Shareholders Agreement Template
Originally published: 07/11/2017 15:28
Last version published: 17/01/2018 11:15
Publication number: ELQ-93585-3
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Subscription & Shareholders Agreement Template

Template designed for Subscription and Shareholders Agreement. (63 pages) Opinion included.

If your startup is fundraising, many documents are required before you obtain any money. A share subscription agreement is one of them. Not every situation needs this agreement, and so its important that entrepreneurs know when you need one and when you don't.

Where does this document slot into the fundraising process?

If you're at the stage where you're already thinking about the legal documents you need, it's probable that you have an investor interested. Now you're getting round to the terms of the investment.

Term sheets are commonly used for negotiation of key terms, and it is, in general, non-binding. This signifies that post-agreement of final terms, things are formalized through a share offer document and a shareholders agreement.

A share subscription agreement sets out the mechanics of the investment and will specify:

The aim of a share subscription agreement is to lay out the mechanics of the investment taking place and will define:

-the number of shares being issued by the startup
-if there are any conditions of which the shares are subject to
-shares' subscription price
-date of shares issuance

On top of this, company representations and warranties are included in a share subscription agreement. Warranties benefit the investor because they help them to understand what they're buying into without having to carry out independent due diligence.

*Originally posted on BVCA website*

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1 Downloadable Subscription & Shareholders Agreement Template

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