Share Subscription Agreement: simple transaction

Template: Share Subscription Agreement: simple transaction

What Net Lawman says about this template:

"This short agreement sets out the terms under which a new or current shareholder subscribes for new shares to create a minority or majority holding in a private company in any industry. He or she is likely to be very familiar already with the business, trust the existing shareholders, or be buying in at a price which lowers the risks significantly. This is therefore an ideal document for situations such as: an additional equity investment by a current shareholder, employee buy-ins, or bringing in a relative into a family business. The document is suitable for companies in any industry and for subscriptions of any size.

It is intended for smaller and uncomplicated transactions:

• for the introduction of a family member into a company
• a senior employee or director buy-in
• the appointment of a new non-executive board member who is incentivised by a small shareholding
• for an existing shareholder to invest additional equity

It differs from our standard subscription agreement by having no warranties, so the subscriber is likely to be familiar with the company already, or trust the existing shareholders, or be buying in at a discount.

The subscription is for cash, with payments in two stages. The final price to be paid is dependent on the profit of the company in the next set of accounts. If the profit is not as promised, the subscriber can deduct an amount from the final payment. The penalty reduction of balance is calculated by reference to a simple, flexible formula that you can alter.

You may also make a loan to the company, though this is covered in a separate document and merely referenced here."

Detailed guidance notes are provided with each template. Net Lawman offers a money back guarantee if the document is not what you need, as well as a legal review option if you want some professional assistance when you are drawing up your documents.

Notice:

The documents menus are designed to describe the documents, but please be sure that you check them over carefully to ensure that they do meet your needs. All documents are subject to Net Lawman's Terms and Conditions, which we ask you to read before you purchase any documents.

We are pleased to be supported by Net Lawman.co.uk as a leading independent online provider of ready-to-use legal documents for business users.

Net Lawman is a founding member of the Association of Publishers of Online Legal Documents (APOD).

APOD exists to:

• promote the sale of online legal and business document templates;
• educate the public about the need for legal documents to protect their interests, and in the online availability of professionally written and affordable template contracts;
• promote and represent the interests of the Association and its members;
• ensure professional standards for customers and the public in accordance with the APOD Code of Practice.

We always welcome your feedback so please do let us know what else you would like to know about using this Form.