Document background
The Equity Financing Agreement serves as the primary legal instrument for documenting investment transactions in Pakistani companies. It is typically used when a company seeks to raise capital by issuing shares to investors, whether they are venture capital firms, private equity funds, or strategic investors. The agreement must comply with Pakistani corporate law, particularly the Companies Act 2017 and relevant SECP regulations. It covers crucial aspects including investment terms, shareholder rights, governance structures, and exit mechanisms. This document is essential for both domestic and foreign investments in Pakistani companies, requiring careful consideration of foreign investment regulations when international investors are involved. The agreement's structure needs to balance investor protection with operational flexibility while ensuring enforceability under Pakistani law.
