Document background
The Preference Shares Investment Agreement is a crucial document used when a company seeks to raise capital by issuing preference shares to investors in Australia. This agreement is typically employed in scenarios where investors require certain preferential rights or protections beyond those available to ordinary shareholders. The document comprehensively details the terms of the investment, including dividend rights, voting rights, liquidation preferences, and any conversion features. It must comply with Australian corporate law requirements, particularly the Corporations Act 2001 and ASIC regulations. The agreement is commonly used in growth capital rounds, strategic investments, or restructuring scenarios where sophisticated investors seek both upside potential and downside protection. It includes provisions for corporate governance, shareholder rights, and exit mechanisms, making it essential for both the issuing company and investors to clearly understand their rights and obligations.
