Shares subscription agreement

Simple transaction
Select support levelCompare
Recommended

Document overview

This is a simple subscription agreement for new shares where the buyer does not need extensive warranties about the state of the company. He or she is likely to be very familiar already with the company, 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: additional equity investment by an existing 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.
Compliant
Compliant with the latest law in
  • ACT
  • NSW
  • NT
  • QLD
  • SA
  • TAS
  • VIC
  • WA
Document propertied
Document properties
  • Length:7 pages (1850 words)
  • Available in:
    MsWordMicrosoft Word DOCXApple pagesApple PagesRTFRTF
watertight guarantee
Backed by our watertight guarantee

If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.

writing in plain english
Written in plain English

We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.

Notes
Guidance notes included

You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.

email
Support from our legal team

Email us with questions about editing your document. Use our Lawyer Assist service if you’d like our legal team to check your document will do as you intend.

Update
Up to date with the latest law

Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.

About this shares subscription agreement

This short agreement is for a new shareholder to subscribe for new shares to create a minority or majority holding in a private company in any industry.

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, or for an existing shareholder to invest additional equity.

It differs from our standard share 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.

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

The law relating to this agreement

The framework of the deal is the Corporations Act 2001. Within that framework, there are no special requirements as to what your deal should be.

Similar documents

This agreement is for the situation where new shares are issued - the buyer does not purchase the shares owned by someone else.

If there is no new issue and the buyer purchases the shares of an existing shareholder, a Share sale and purchase agreement is more suitable.

Sometimes, you may want to change relative ownership proportions at the same time as the sale by subscribing to newly issued shares. For example, you may buy the shares of a departing shareholder and then invest additional equity to obtain a majority shareholding. In that case, you will need a Share purchase and subscription agreement.

If you require warranties, see our standard share subscription agreement.

You may also need other documents:

Contents of this shares subscription agreement

  • Definitions and interpretation: simple ways to avoid legalese and cover multiple situations of the same type
  • Agreement for subscription
  • Calculation of minimum profit
  • Completion of the deal and delivery of documents
  • Various legal provisions usual in a document of this type
Sample shares subscription agreementFront cover

Choose the level of support you need

Document Only

Complete the document template yourself using our guidance notes
A$49.00
  • ok This document
  • okDetailed guidance notes explaining how to edit each paragraph
Most Popular

Lawyer Assist

Support from our legal team during and after editing
212 Reviews
A$324.00
  • ok This document
  • okDocument with guidance notes explaining how to edit each paragraph
  • okUnlimited email support - ask our legal team any question related to completing the document
  • ok
    Review of your edited document by our legal team including:
    • reporting on whether your changes comply with the law
    • answering your questions about how to word a new clause or achieve an outcome
    • checking that your use of defined terms is correct and consistent
    • correcting spelling mistakes
    • reformatting the document ready to sign
© 1999 - 2024 Net Lawman Limited.
All rights reserved