Document background
The Preference Share Agreement is a vital legal document used when an Irish company wishes to issue shares with preferential rights to investors. This agreement is particularly relevant in funding rounds where investors seek certain privileges or protections beyond those offered to ordinary shareholders. The document, governed by Irish law and compliant with the Companies Act 2014, outlines crucial terms including dividend rights, voting rights, capital rights, and various protective provisions. It's commonly used in growth-stage companies, restructuring scenarios, or when companies need to raise capital while maintaining existing control structures. The agreement typically includes detailed provisions on share rights, anti-dilution protection, information rights, and exit mechanisms, making it essential for both companies seeking investment and investors looking for structured returns with certain preferential rights.
