Document background
A Shares Subscription Agreement is a crucial document used when a company is issuing new shares to investors, whether as part of a capital raising, investment round, or strategic partnership. This agreement, governed by Australian law, establishes the legal framework for the share subscription, including the number and class of shares being issued, the subscription price, and any conditions that must be met before the subscription can complete. It contains important protections for both the company and the subscriber through warranties and representations, and ensures compliance with the Corporations Act 2001 and other relevant Australian legislation. The document is particularly important in private company contexts and is often used in conjunction with other transaction documents such as shareholders' agreements and disclosure letters.
