Subscription And Shareholders Agreement Template for Netherlands

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Key Requirements PROMPT example:

Subscription And Shareholders Agreement

"I need a Subscription and Shareholders Agreement under Dutch law for a Series A investment round where a venture capital firm is investing €5 million for a 25% stake in our technology startup, with completion planned for March 2025."

Document background
The Subscription And Shareholders Agreement is a fundamental document used in Dutch corporate transactions where new investors are entering a company while establishing long-term governance arrangements. It serves two primary purposes: facilitating the subscription of shares by new investors and establishing the framework for ongoing relationships between all shareholders. This document is particularly crucial in private equity investments, venture capital funding rounds, joint ventures, and corporate restructurings in the Netherlands. It needs to comply with Dutch corporate law requirements, particularly the Dutch Civil Code (Burgerlijk Wetboek), and typically includes provisions for share issuance, transfer restrictions, voting rights, board composition, reserved matters, and exit mechanisms. The agreement is designed to protect both existing and new shareholders while providing clear governance structures for the company's operation.
Suggested Sections

1. Parties: Identification of all parties to the agreement including the Company, existing shareholders, and new subscribing shareholders

2. Background: Context of the transaction, current shareholding structure, and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Subscription for Shares: Details of share subscription including number, class, price, and payment terms

5. Completion: Conditions precedent, completion mechanics, and timing for the share subscription

6. Warranties and Representations: Standard warranties from the Company and subscribing shareholders

7. Share Capital and Further Issues: Structure of share capital and procedures for future share issuances

8. Transfer Restrictions: Limitations on share transfers and required procedures

9. Tag-Along and Drag-Along Rights: Co-sale rights and forced sale provisions

10. General Meeting and Voting: Procedures for shareholder meetings and voting arrangements

11. Management and Control: Board composition, appointment rights, and management structure

12. Reserved Matters: Decisions requiring special majority or specific shareholder approval

13. Information Rights: Shareholders' rights to company information and financial reports

14. Dividend Policy: Framework for determining and distributing dividends

15. Confidentiality: Obligations regarding confidential information

16. Term and Termination: Duration of the agreement and termination provisions

17. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Anti-Dilution Protection: Protection for investors against future down rounds, included when requested by institutional investors

2. Preferred Rights: Special rights attached to preferred shares, included when different share classes are involved

3. Employee Share Scheme: Framework for employee share ownership, included when company plans to implement ESOP

4. Non-Compete and Non-Solicitation: Restrictions on competitive activities, included for key shareholders

5. Intellectual Property Rights: IP ownership and protection provisions, crucial for technology companies

6. Dead Lock Resolution: Mechanisms to resolve shareholder disputes, important for 50/50 joint ventures

7. Exit Strategy: Provisions regarding future sale or IPO, included for venture capital investments

8. Management Incentive Plans: Framework for management incentives, included when management shareholders are involved

Suggested Schedules

1. Cap Table: Current and post-completion shareholding structure

2. Subscription Details: Detailed terms of share subscription including payment instructions

3. Company Information: Key corporate information and existing corporate documents

4. Reserved Matters List: Detailed list of matters requiring special approval

5. Board Rules: Detailed rules governing board operations and procedures

6. Form of Deed of Adherence: Template for new shareholders to join the agreement

7. Warranties: Detailed warranties given by the Company and/or selling shareholders

8. Business Plan: Company's business plan and financial projections

9. Articles of Association: Current or amended articles of association reflecting the agreement

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

Manufacturing

Real Estate

Healthcare

Energy

Retail

Professional Services

Media and Entertainment

Telecommunications

Biotechnology

Clean Technology

E-commerce

Software

Consumer Goods

Relevant Teams

Legal

Finance

Corporate Development

Compliance

Risk Management

Executive Leadership

Board of Directors

Investment

Corporate Governance

Treasury

Company Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Secretary

Investment Director

Managing Director

Legal Counsel

Corporate Lawyer

Investment Manager

Board Member

Compliance Officer

Finance Director

Business Development Director

Company Secretary

Private Equity Manager

Venture Capital Manager

Risk Manager

Corporate Development Manager

Industries
Dutch Civil Code (Burgerlijk Wetboek) - Book 2: Primary legislation governing legal entities, corporate structure, and shareholders' rights in the Netherlands. Contains mandatory provisions about corporate governance, share transfers, and shareholders' meetings.
Financial Supervision Act (Wet op het financieel toezicht - Wft): Regulates financial markets and their supervision, including rules about securities offerings and trading. Relevant for share subscription aspects.
Dutch Corporate Governance Code: Contains principles and best practice provisions for governance, relationships between corporate bodies, and shareholder rights in listed companies. While not mandatory for private companies, it provides valuable guidance.
Works Councils Act (Wet op de ondernemingsraden): May be relevant if the company has a works council, as certain corporate decisions might require works council consultation or approval.
Commercial Code (Wetboek van Koophandel): Contains additional provisions relevant to commercial relationships and business operations.
General Data Protection Regulation (GDPR/AVG): Relevant for handling personal data of shareholders and maintaining shareholder registers.
Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft): Relevant for customer due diligence requirements when new shareholders subscribe to shares.
Dutch Tax Law (Wet op de inkomstenbelasting/Wet op de vennootschapsbelasting): Important for tax implications of share transfers, dividend distributions, and other corporate actions.
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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