When it comes to share premium contribution agreements, there are a few important points that you need to keep in mind. Simply put, these agreements outline the terms and conditions of a relationship between shareholders and the company. It deals specifically with the amount of money that a shareholder contributes to the company in exchange for shares.
One example of a share premium contribution agreement might look something like this:
The undersigned shareholder hereby agrees to contribute $[amount] to the Company in exchange for [number] shares of common stock. These shares shall have a par value of $[value].
The shareholder acknowledges that this contribution represents a share premium, which is the amount paid over and above the par value of the shares. This share premium shall be added to the Company`s capital and shall be used solely for the purposes of the Company`s business.
The shares issued pursuant to this agreement shall be subject to the terms and conditions set forth in the Company`s Articles of Incorporation and Bylaws, as amended from time to time.
The shareholder acknowledges that the shares being issued pursuant to this agreement may be subject to certain restrictions, including but not limited to limitations on transferability and voting rights. The Company reserves the right to impose such restrictions as necessary to comply with applicable laws and regulations.
In consideration of the shareholder`s contribution, the Company hereby agrees to issue the shares to the shareholder and to use the funds contributed for the purposes of the Company`s business.
This agreement shall be binding upon and enforceable against the parties hereto, their respective heirs, executors, administrators, successors, and assigns.
In conclusion, a share premium contribution agreement is an important document that outlines the terms and conditions of a shareholder`s investment in a company. As a professional, it is important to ensure that this document is clear, concise, and well-written to ensure that both parties understand the terms and conditions of the agreement.