Share Subscription Agreement

A Share Subscription Agreement is a document that serves as a contract between a company and investor for the issuing of shares. The agreement details the terms and conditions of the sale of shares by a company to an investor. This type of of share agreement is typically used when a private company is going through a round of capital raising. Selling shares in a company is an effective method of raising capital, particularly in the early stages of establishment. If your company isn't issuing new shares and rather an investor is purchasing off an existing shareholder, a purchase and sell agreement may be better suited. 

This document will also set out representations of both the company and the subscriber of the shares. These representations seek to confirm that both parties have the authority to enter into the agreement and are doing so legally. 

Whether you’re the company issuing shares or an investor, it is recommended that you have a lawyer look over your agreement.