The share purchase agreement is a legal document between the investor, the participating company and the company that details the company`s offer to sell a certain number of shares to an investor at a specified price and the investor`s agreement to pay that price for the purchase of the shares. Therefore, the share exchange agreement defines the terms of the investment transaction, including the price and agreed amount of the shares. Appointment sheets are NOT a legal commitment or contract to make an investment in the company. Therefore, a signed appointment sheet does not guarantee any investment in the company. However, an agenda is a legal contract that contains different clauses to keep investment negotiations confidential, prevent the company from looking for other investors during due diligence, the amount of the investment in the company, the valuation of the company, the type of action to be given and other details of the transaction. Although the statutes address some of the areas mentioned in the shareholders` pact, it is important that there is a custom shareholder pact when they are making or receiving an investment in a company. The capitalization table lists the company`s shareholders, the amount and nature of the shares held by each shareholder. Therefore, the capitalization table is an invaluable tool for identifying and tracking a company`s holdings before and after a stake. If you are an entrepreneur looking for a stake in your business, it is important that you know the investment documents. The investment documents cited here are the main legal documents explaining the law and responsibilities of all parties involved in the transaction.
The shareholder contract is a legal agreement between the shareholders of a company. The shareholder contract is executed by an investor of the company in order to meet in writing the expectations of each party, establish a fair relationship and supervise the operation of the company. Some of the key areas covered in a shareholder pact are:.