It is essential that at an early stage of the discussion, the parties have a good idea of the nature of the investment and the different rights and restrictions that apply and apply to different investment instruments. Always remember that there is not a single universal set of rights or restrictions for investments and that any provision is a matter of negotiation between the parties. It is therefore important that you understand the differences between the different investment instruments and choose the method that best suits your business and the interests of the investor. Benefits for issuing companies: the issuance of common shares is an important way to raise capital, to finance expansion without making too much debt. While this dilutes the ownership of the company, unlike debt financing, shareholder investments should not be repaid at a later date. In this investment agreement for common shares, we have simplified the language as much as possible to make it user-friendly for companies that are not legally trained. We have structured the agreement as follows: Reserved questions: These decisions include changing the rights of the shares, amending the statutes, changing the structure of the social capital or changing the name or address of the headquarters. Limited liability: This means that common shareholders are protected from the company`s financial obligations and are only responsible for the value of their shares. You will also receive pre-emption rights.
Shareholders with pre-emption rights have access to new share issues before the rest of the public, often with a discount. Preferred shares: Preferred shares generally grant the holders a kind of preferential or preferential rights, beyond the rights of ordinary shareholders. These rights and benefits for the preferential action (s) vary from company to company and should be defined in the company`s by-law in accordance with the Singapore Companies Act. Most preferred shares offer to their holders: If you need the following adjustment to the document, you may need the help of lawyers: Common Shares: Shares held by people who hold voting rights at company meetings and who receive a portion of the company`s profits after the preferred shareholders have been paid. Compare preferred shares. Common shares: Common shares are the main type of limited liability shares. In these companies, all shareholders have the same rights. The holder (s) of the common shares is generally entitled to:.
