Document background
The Shareholder Investment Agreement is a crucial document used when new investors are acquiring shares in a German company, whether through primary investment (new shares) or secondary transactions (existing shares). It outlines the relationship between shareholders and establishes governance frameworks compliant with German corporate law. This agreement is particularly important in venture capital and private equity transactions, containing detailed provisions about investment terms, shareholder rights, corporate governance, share transfer restrictions, and exit mechanisms. The document must comply with German legal requirements, particularly considering the GmbH-Gesetz for private limited companies or Aktiengesetz for stock corporations, while also addressing practical business needs such as minority shareholder protection and strategic decision-making processes.
