YL TV: Share Subscription Agreement
This week on You Legal TV, we take a look at the structure of the Share Subscription Agreement. Watch the episode here:
See below for a complete transcript of this episode -
Welcome to You Legal TV.
You’ve wooed investors with your pitch, set out the Term Sheet and prepared the Share Offer document, but you may find that experienced venture capitalists will also expect a Share Subscription Agreement.
This Agreement will typically contain five types of clauses:
Representations and warranties of the investor;
and also of the company;
Conditions precedent, which set out who needs to do what before the Agreement comes into force;
Confidentiality; and
The Tranches clause sets out the details of the deal found in the term sheet.
While the document contains clauses that benefit both parties, a Share Subscription Agreement is ultimately a document for the benefit of the investor.
Visit our blog for more information, or contact us for advice on your legal obligations. We’re always happy to help.
The Anatomy of a Share Subscription Agreement
What Should I Do Next?
Contact us if you would like to have more information on drafting a Share Subscription Agreement. Our lawyers at You Legal will be happy to assist you in whatever way we can.
* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.