Document background
The Preferred Equity Agreement serves as a critical document for companies seeking to raise capital without incurring debt. Under Singapore's robust legal framework, this agreement defines the relationship between the company and preferred shareholders, outlining their enhanced rights and privileges. The document typically includes detailed provisions on dividend preferences, liquidation rights, voting powers, and conversion options. It's particularly relevant for growth-stage companies and established businesses seeking strategic investment while maintaining operational control. The agreement must comply with Singapore's Companies Act and Securities and Futures Act, ensuring proper corporate governance and investor protection.
