Document background
A Preference Share Subscription Agreement is a crucial document used when a company wishes to raise capital by issuing preference shares to investors. This agreement, governed by Australian law, is commonly used in private equity investments, venture capital funding rounds, and corporate restructuring scenarios. The document comprehensively outlines the terms of the investment, including the rights attached to the preference shares (such as preferential dividends, liquidation preferences, and conversion rights), the subscription process, and various protections for both the issuing company and the investor(s). It ensures compliance with the Corporations Act 2001 (Cth) and other relevant Australian regulations, while also addressing key commercial terms such as valuation, governance rights, and exit mechanisms. The agreement is particularly important for companies seeking structured equity financing while maintaining existing voting control structures.
