Document background
The Share Subscription And Shareholders Agreement is a fundamental document used in Australian corporate transactions when a company is issuing new shares to investors while simultaneously establishing the framework for shareholder relationships. This agreement is particularly crucial for private companies raising capital, whether through seed funding, series funding rounds, or private equity investment. It serves dual purposes: facilitating the subscription of new shares and governing the ongoing relationship between shareholders. The document typically becomes relevant during investment rounds, company restructuring, or when bringing in strategic investors. It must comply with Australian corporate law requirements, particularly the Corporations Act 2001, and includes essential provisions for share issuance, corporate governance, shareholder rights, and exit mechanisms. The agreement is designed to protect both the company's and shareholders' interests while providing a clear framework for future operations and potential exits.
