A subscription is a type of contract, and therefore the remedies for its violation are the same as those relating to the infringement and include specific damages and benefits. A share subscription agreement will provide information on the company`s shares and the price at which the shares will be sold. It gives an investor an overview of the value of the company`s shares. Typically, a company has two opportunities to raise capital. They can either go public and issue shares on the general and stock exchange, or invite private investors. In all cases, the share exchange contract, which determines the number of shares a company is willing to give to the subscriber, and the price at which those shares are given comes into play. Some of the most common clauses in a share subscription contract are confidentiality, precedent terms, guarantees, compensation, etc. The main difference is the name opening document. It is known as a private placement memorandum with a private company and a prospectus with a public company. Once this is signed, it is added to the subscription contract. It is an agreement outlining the rights and obligations of the company and shareholders.
The shareholders` pact, also known as the shareholders` pact, aims to protect the minority or the majority of shareholders depending on the nature of the drafting. The aim of this document is to create the right balance between shareholders. The agreement generally describes in detail the rights and obligations of each shareholder and the legitimate pricing of the shares. As a general rule, a sponsor contract must include the number of shares the entity assigns to the shareholder, as well as the order and timing of the shareholder`s payment. A share subscription contract varies greatly depending on the needs of each company, but some of the common clauses are confidentiality, compliance with the previous condition, tranches and warranty and compensation. In the previous paragraphs, it can be concluded that any type of agreement, whether it is possible to enter into a share purchase agreement, a share subscription contract or a shareholder contract, in order to protect the investor and the company from litigation. Each of these three agreements has its own specificities. It is not a golden rule to enter into an agreement to sell or purchase a stock, but to contain the problems that may arise in the future, it is always advantageous to give a written form to these transactions, that is, to conclude an agreement. A shareholders` agreement is concluded between all shareholders and the company or between a group of shareholders and the company.