A share purchase agreement is an agreement between a company and investors to sell shares at a fixed price to investors. This is done simply by offering new shares to investors who will become shareholders of the company at the close of the transaction. If a company wants to raise capital, it can do so by issuing shares that can be acquired through private placement or public offering. The shareholding agreement and the shareholder contract are signed at the end of the due diligence process when setting up a company. Although these are two separate documents, they are sometimes put together in a single document, known as the „investment agreement.“ However, it is recommended that they be kept separately for clarity. One of the differences between the share purchase agreement and the shareholder contract is that the shareholder contract is more detailed. The share agreement is generally simple and simple, but can sometimes contain detailed conditions on shareholder guarantees and compensation. It is an exchange of promises between a potential shareholder known as a subscriber and a company. A share purchase agreement provides that the company agrees to sell a certain number of shares at a specified time and price, so that the subscriber becomes a shareholder. In return, the subscriber agrees to buy the shares at a certain time and price. Share subscription contracts are common in limited partnerships, when the partnership or entire partnership is managed. To become a partner, you must meet the standard requirements of the stock subscription contract.
Contact us, your lawyer in Florida to help you understand the difference between the share subscription agreement and the shareholders` pact and help you with execution. On the other hand, the shareholders` pact defines the relationship between shareholders, defines the terms of the company`s participation and is not directly related to the investment process itself.