About : Share Subscription Agreement
The share subscription agreement is one type of share offer document. It is also known as a two-way guarantee, the subscriber agrees to purchase shares at a fixed price while the company agrees to sell those shares.
In simple language it is an exchange of promises between a shareholder and company.
Here are some of the advantages of the share subscription agreement.
Advantages of Share Subscription Agreement
- The multilateral approach of investment is not taken here, it’s a one-time investment
- With share subscription one can sell stock without registration with the Security and Exchange Commission otherwise it is costly and time-consuming
- Investment of time can be curtailed for silent partners
- Liability is limited as its limited partnership
Disadvantage of Not Using Share Subscription Agreement
The investor can get the leverage of knowing the management and ask questions from the partner if the investment is made through a subscription agreement; it’s not possible otherwise.
What Does This Document Include?
This document includes the parties to the transaction, description of the shares being offered for sale, purchase price (consideration), warranties and representations of the parties, pre-completion and post-completion requirements, etc.
Share Subscription Agreement Pricing
We currently provide a single charge package for this service
- Document collection
- Submitting hard and soft copies.
Frequently Asked Questions (FAQs)
Here are answers to some of the most basic questions that you might have with respect to this service provided by us.
Is a share subscription agreement necessary?
Private companies tend to use subscription agreements if they want to raise capital from investors that are private. Having a subscription agreement will help solidify a promise into a fixed transaction.
This document is signed by the company and the individual who is receiving the shares.