Investment Deed Template for Hong Kong

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Key Requirements PROMPT example:

Investment Deed

"I need an Investment Deed under Hong Kong law for a Series A investment of HKD 50 million into a fintech startup, with provisions for anti-dilution protection and board appointment rights for the lead investor who will be taking a 25% stake."

Document background
The Investment Deed is a crucial document used in Hong Kong's investment landscape when formalizing significant investment transactions. It serves as the primary agreement governing the relationship between investors and companies seeking capital. The deed is particularly important in Hong Kong's dynamic business environment, where it must comply with local regulations including the Companies Ordinance and Securities and Futures Ordinance. This document typically includes detailed provisions on investment terms, shareholding rights, corporate governance, exit mechanisms, and investor protections. The Investment Deed is essential for both private equity and venture capital transactions, providing a comprehensive framework that protects all parties' interests while ensuring regulatory compliance in Hong Kong's sophisticated financial market.
Suggested Sections

1. Parties: Identification of all parties to the deed including the investor(s), investee company, and any guarantors

2. Background: Context of the investment, including brief company history and purpose of the investment

3. Definitions and Interpretation: Defined terms and interpretation rules used throughout the deed

4. Investment Terms: Details of the investment amount, type of securities, and payment terms

5. Conditions Precedent: Conditions that must be satisfied before the investment becomes effective

6. Completion: Process and requirements for completing the investment transaction

7. Warranties and Representations: Statements of fact and assurances given by the parties

8. Covenants: Ongoing obligations and commitments of the parties

9. Information Rights: Investor's rights to receive company information and reports

10. Corporate Governance: Management structure and decision-making processes

11. Transfer Restrictions: Limitations on transfer of securities and pre-emptive rights

12. Exit Provisions: Terms governing investor exit options and procedures

13. Confidentiality: Obligations regarding confidential information

14. Notices: Process for giving formal notices under the deed

15. General Provisions: Standard boilerplate clauses including governing law and jurisdiction

Optional Sections

1. Tag-Along Rights: Used when investors want the right to join in sales by other shareholders

2. Drag-Along Rights: Include when majority shareholders want the right to force minorities to join in a sale

3. Anti-Dilution Protection: Include for protection against future down-rounds

4. Founder Commitments: Include when founders are giving specific commitments or non-compete obligations

5. Preferred Rights: Used when issuing preferred shares with special rights

6. Board Appointment Rights: Include when investors are getting board representation rights

7. Performance Targets: Used when investment terms are linked to company performance

8. Environmental, Social and Governance (ESG): Include when there are specific ESG requirements or reporting obligations

Suggested Schedules

1. Schedule 1 - Company Information: Details of the company structure, share capital, and existing shareholders

2. Schedule 2 - Warranties: Detailed list of warranties given by the company and founders

3. Schedule 3 - Reserved Matters: List of decisions requiring investor consent

4. Schedule 4 - Completion Requirements: Detailed list of documents and actions required at completion

5. Schedule 5 - Form of Deed of Adherence: Template for new parties joining the deed

6. Schedule 6 - Business Plan: Company's business plan and financial projections

7. Appendix A - Capitalization Table: Pre and post-investment shareholding structure

8. Appendix B - Key Performance Indicators: Metrics for measuring company performance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Technology

Financial Services

Real Estate

Healthcare

Manufacturing

E-commerce

Biotechnology

Renewable Energy

Infrastructure

Consumer Goods

Education

Professional Services

Media and Entertainment

Transportation and Logistics

Agriculture and Food

Relevant Teams

Legal

Finance

Corporate Development

Investment

Compliance

Executive Management

Board of Directors

Company Secretariat

Risk Management

Corporate Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Investment Director

Corporate Lawyer

Investment Manager

Company Secretary

Finance Director

Compliance Officer

Private Equity Partner

Venture Capital Manager

Board Director

Managing Director

Investment Analyst

Legal Counsel

Corporate Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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