Document background
The Investment And Shareholders Agreement is a crucial document used when a company is seeking to raise capital through equity investment while establishing a clear framework for shareholder relationships. This agreement is particularly important in the Hong Kong market, where it must comply with the Companies Ordinance (Cap. 622) and related regulations. It is typically used in various funding rounds, from early-stage investments to later-stage private equity deals, and serves multiple purposes: documenting the investment terms, protecting both investors' and existing shareholders' rights, establishing corporate governance mechanisms, and providing clear exit pathways. The agreement needs to be carefully structured to balance Hong Kong's legal requirements with international investment practices, particularly when dealing with foreign investors entering the Hong Kong market.
