Document background
A Preference Shares Agreement is essential when a Swiss company seeks to raise capital by issuing shares with preferential rights over ordinary shares. This document type is commonly used in capital raising scenarios, corporate restructuring, or strategic investment situations. The agreement must comply with Swiss corporate law requirements, particularly the Swiss Code of Obligations, and typically includes detailed provisions about preferential dividend rights, voting rights, capital rights, and redemption terms. It's particularly relevant for companies looking to attract institutional investors or strategic partners while maintaining existing control structures. The document needs to carefully balance the rights of preference shareholders with those of ordinary shareholders while ensuring compliance with Swiss corporate governance requirements and financial market regulations.
