Investment For Equity Agreement Generator for Australia

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Key Requirements PROMPT example:

Investment For Equity Agreement

"I need an Investment For Equity Agreement for a Series A investment of AUD 2 million into my Australian technology startup, with provisions for board representation and anti-dilution protection for the venture capital investor who will be taking a 20% stake."

Document background
The Investment For Equity Agreement is a critical document used when a company seeks to raise capital by offering shares to investors. This agreement, structured under Australian law, serves as the primary document governing the relationship between the investor and the company. It is particularly important for startups, scale-ups, and established companies seeking growth capital. The agreement covers essential elements including the investment amount, share price and quantity, investor rights (such as board representation or veto rights), warranties, and completion mechanics. It must comply with Australian corporate law requirements, particularly the Corporations Act 2001 (Cth) and ASIC regulations, and typically includes provisions for future capital raises, exit mechanisms, and shareholder protections.
Suggested Sections

1. Parties: Identification of the investor(s) and the company, including ACN/ABN and registered addresses

2. Background: Context of the investment, including company's business and purpose of the investment

3. Definitions: Key terms used throughout the agreement

4. Investment Terms: Details of the investment amount, payment terms, and conditions precedent

5. Share Issuance: Number and class of shares to be issued, price per share, and timing of issuance

6. Completion: Process and requirements for completing the investment transaction

7. Company Warranties: Representations and warranties given by the company regarding its status, operations, and financial position

8. Investor Warranties: Representations and warranties given by the investor regarding their capacity to invest

9. Confidentiality: Obligations regarding confidential information

10. Shareholder Rights: Basic rights attached to the shares being issued

11. Dispute Resolution: Process for resolving disputes between parties

12. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction

Optional Sections

1. Board Representation: Rights of the investor to appoint directors - include when the investment size warrants board representation

2. Anti-dilution Protection: Provisions protecting the investor from dilution in future capital raises - typically included for significant investments

3. Tag-along Rights: Right of the investor to join in the sale of shares by other shareholders - important for minority investor protection

4. Drag-along Rights: Right of majority shareholders to force minority shareholders to join in a sale - include when requested by major investors

5. Dividend Rights: Special dividend rights or preferences - include when negotiated as part of the investment terms

6. Information Rights: Rights to receive specific company information and reports - important for significant investments

7. Pre-emptive Rights: Rights to participate in future share issues - typically included for substantial investments

8. Vesting Provisions: If shares are subject to vesting conditions - typically used for founder or employee investments

Suggested Schedules

1. Schedule 1 - Company Details: Detailed information about the company including corporate structure, subsidiaries, and material contracts

2. Schedule 2 - Capital Structure: Complete breakdown of the company's share capital before and after the investment

3. Schedule 3 - Warranties: Detailed list of company warranties and any limitations

4. Schedule 4 - Key Terms of Issue: Detailed terms of the share class being issued including rights and restrictions

5. Schedule 5 - Completion Checklist: List of actions and documents required for completion

6. Appendix A - Share Certificate: Pro forma share certificate to be issued

7. Appendix B - Board Resolution: Pro forma board resolution approving the share issue

8. Appendix C - Deed of Accession: If required for existing shareholders agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Technology

Healthcare

Renewable Energy

Financial Services

E-commerce

Biotechnology

Software Development

Real Estate

Manufacturing

Professional Services

Media and Entertainment

Agriculture

Education Technology

Consumer Goods

Infrastructure

Relevant Teams

Legal

Finance

Corporate Development

Executive Leadership

Board of Directors

Investment

Compliance

Corporate Secretariat

Risk Management

Treasury

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

General Counsel

Investment Manager

Corporate Lawyer

Financial Controller

Company Secretary

Board Director

Managing Director

Venture Capital Associate

Private Equity Manager

Investment Analyst

Corporate Development Manager

Finance Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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