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Simple Equity Investment Agreement Generator for England and Wales

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Key Requirements PROMPT example:

Simple Equity Investment Agreement

"I need a Simple Equity Investment Agreement for a £500,000 investment into my tech startup, with completion planned for March 2025, including standard investor protections but excluding board appointment rights."

Document background
The Simple Equity Investment Agreement is commonly used for straightforward equity investments in private companies where sophisticated investment documentation (such as a full Subscription and Shareholders' Agreement) may not be necessary or proportionate. This document, governed by English and Welsh law, typically includes key terms such as investment amount, share price, warranties, and completion mechanics. It's particularly suitable for early-stage investments, angel investors, or smaller investment rounds where the parties seek to document their arrangement efficiently while maintaining appropriate legal protections.
Suggested Sections

1. Parties: Identification of investor(s) and company, including registered addresses and company numbers

2. Background: Context of the investment, including company's business and investment purpose

3. Definitions: Key terms used throughout the agreement

4. Investment Terms: Amount of investment, share class, price per share, and payment terms

5. Completion: Conditions precedent, completion mechanics, and timing

6. Warranties: Standard company warranties and investor warranties

7. Boilerplate Provisions: Standard legal provisions including governing law, notices, and entire agreement

Optional Sections

1. Board Appointment Rights: Investor rights to appoint directors - typically included for larger investments or when investor requires board representation

2. Anti-dilution Protection: Provisions protecting investor from future dilution - typically included for sophisticated investors or larger investments

3. Information Rights: Investor rights to receive company information - included when investor requires enhanced information access

4. Tag-Along Rights: Right to join in sale of shares by other shareholders - included for minority investor protection

Suggested Schedules

1. Schedule 1: Company Details: Corporate information, share capital structure, and existing shareholders

2. Schedule 2: Warranties: Detailed company warranties

3. Schedule 3: New Articles: New articles of association to be adopted (if required)

4. Schedule 4: Completion Requirements: List of documents and actions required at completion

5. Appendix 1: Share Certificate: Pro-forma share certificate

6. Appendix 2: Board Minutes: Pro-forma board minutes approving the investment

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses






























Industries

Companies Act 2006: Primary legislation governing company operations including share capital rules, allotment procedures, directors' duties, shareholder rights, pre-emption rights, and company registration requirements

Financial Services and Markets Act 2000: Key legislation covering financial promotion restrictions, regulated activities provisions, and fundamental investor protection measures

Financial Services Act 2012: Updates to the financial regulation framework and additional investor protection measures

FCA Regulations: Regulatory framework covering regulated activities, investor classification requirements, and financial promotion rules set by the Financial Conduct Authority

Income Tax Act 2007: Tax legislation relevant for personal tax implications of equity investments and potential tax relief schemes

Corporation Tax Act 2010: Corporate tax legislation covering company tax implications, EIS/SEIS considerations, and stamp duty requirements

English Contract Law: Common law principles governing contract formation including consideration, intention to create legal relations, and capacity to contract

Retained EU Law: Post-Brexit retained European Union legislation affecting investments and cross-border considerations

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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