Share Subscription Agreement Template Canada
Sometimes you may want to change the relative ownership at the same time as the sale by subscribing to the newly issued shares. You can buy the shares of an outgoing shareholder. B, then invest additional equity to obtain a majority stake. In this case, you will need a share purchase and subscription contract. This agreement applies to the situation in which new shares are issued – the buyer does not buy the shares held by another person. The subscription is for cash, with two-step payments. The final price to be paid depends on the entity`s profits in the next billing group. If the benefit is not as promised, the member can deduct an amount from the last payment. The reduction in balance penalties is calculated on the basis of a simple and flexible formula. If you need guarantees, check out our standard stock subscription agreement.
Download sample subscription agreementThe short agreement is for a new shareholder to purchase new shares in order to create a minority or majority stake in a private company in each sector. A subscription contract contains the details of the purchase price for the sale of your company`s shares. It also includes the representation and guarantees that each party will make between them as part of the agreement. (Learn more about subscription agreements.) It is different from our standard share subscription contract by having no warranty, so the subscriber is probably already familiar with the company, familiar with existing shareholders or buying with a discount. It is intended for smaller and simpler transactions: for the introduction of a family member into a company, an executive or a buy-in manager, the appointment of a new non-executive member of the board of directors, prompted by a small stake, or for an existing shareholder to invest additional equity. If there is no new issue and the purchaser acquires the shares of an existing shareholder, a share purchase agreement is more appropriate.
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