Document background
The Equity Investment Agreement is a crucial document used when an investor is acquiring shares in a Danish company, whether through a new issue of shares or purchase of existing shares. This agreement is essential for both early-stage investments and later funding rounds, providing a legally binding framework that complies with Danish corporate law. It typically follows successful negotiations and term sheet signing, incorporating detailed provisions about the investment structure, shareholder rights, and company obligations. The agreement must align with the Danish Companies Act (Selskabsloven) requirements and often works in conjunction with updated Articles of Association and potentially a Shareholders' Agreement. It's particularly important for documenting complex investment terms, protecting both investor and company interests, and establishing clear governance frameworks.
