Document background
A Preference Share Agreement is essential when a company seeks to raise capital by issuing shares with preferential rights while maintaining existing control structures. This document is commonly used in Australia for various corporate purposes, including growth capital raising, strategic investments, and corporate restructuring. The agreement must comply with Australian corporate law, particularly the Corporations Act 2001, and typically includes detailed provisions on dividend rights, capital rights, voting rights, and redemption terms. It's particularly useful for companies wanting to attract investors by offering preferential financial returns without necessarily granting full voting rights or when implementing complex capital structures. The document needs to address specific Australian regulatory requirements, tax implications, and market practices while protecting both the issuing company's and investors' interests.
