Ƶ

Equity Stake Agreement for Nigeria

Equity Stake Agreement Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that documents the terms and conditions of an equity investment in a company. The agreement outlines the purchase or subscription of shares, establishing the rights and obligations of all parties involved. It incorporates key provisions required under the Companies and Allied Matters Act (CAMA) 2020 and other relevant Nigerian legislation, covering aspects such as share transfer mechanics, corporate governance arrangements, shareholder rights, and protection mechanisms. The document serves as the primary instrument for recording ownership changes and protecting both incoming investors and existing shareholders.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Equity Stake Agreement

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Equity Stake Agreement?

The Equity Stake Agreement is a crucial document used in Nigerian corporate transactions when a new investor acquires ownership in a company or when existing ownership structures are modified. This agreement, governed by Nigerian law and compliant with CAMA 2020, serves multiple purposes: it documents the transfer or issuance of shares, establishes governance rights, protects minority interests, and sets out clear procedures for future corporate actions. The document is essential for both domestic and foreign investments, requiring careful consideration of local regulatory requirements, including those from the Corporate Affairs Commission and, where applicable, the Securities and Exchange Commission. It typically includes detailed provisions on share valuation, transfer restrictions, management participation, and exit mechanisms, making it a fundamental tool for corporate restructuring and investment transactions in Nigeria.

What sections should be included in a Equity Stake Agreement?

1. Parties: Identification of all parties to the agreement including the company, existing shareholders, and incoming investor(s)

2. Background: Context of the transaction, including current shareholding structure and purpose of the investment

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Equity Stake Details: Details of the shares being issued/transferred, including class, number, and percentage of ownership

5. Consideration and Payment Terms: Purchase price, payment method, and timing of payments

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

7. Warranties and Representations: Standard warranties from both parties regarding capacity, authority, and accuracy of information

8. Corporate Governance: Board composition, voting rights, and management participation

9. Transfer Restrictions: Limitations on future share transfers, including right of first refusal and tag-along rights

10. Confidentiality: Obligations regarding confidential information and announcements

11. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

12. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Equity Stake Agreement?

1. Pre-emptive Rights: Rights of existing shareholders to participate in future share issues - include when existing shareholders require protection against dilution

2. Foreign Investment Provisions: Special provisions required for foreign investors - include when investor is non-Nigerian

3. Industry-Specific Compliance: Specific regulatory compliance provisions - include for regulated industries like banking or insurance

4. Exit Rights: Provisions for future exit including put/call options - include for significant minority investments

5. Anti-dilution Protection: Protection against future dilution of shareholding - include for venture capital or strategic investors

6. Dividend Policy: Specific arrangements for dividend distributions - include when parties want predetermined dividend arrangements

7. Management Agreements: Terms of management participation - include when investor will take active management role

8. Environmental and Social Compliance: ESG compliance requirements - include for international investors or regulated industries

What schedules should be included in a Equity Stake Agreement?

1. Share Capital and Shareholding Structure: Detailed breakdown of company's share capital and shareholding before and after transaction

2. Completion Obligations: List of documents and actions required for completion

3. Warranties: Detailed warranties given by the company and existing shareholders

4. Company Information: Key corporate information including assets, contracts, and employees

5. Board Regulations: Detailed procedures for board meetings and decision-making

6. Reserved Matters: List of decisions requiring special majority or investor consent

7. Share Valuation Methodology: Agreed method for valuing shares for future transfers or exits

8. Deed of Adherence: Template deed for future shareholders to join the agreement

Authors

Alex Denne

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

Jurisdiction

Nigeria

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions











































Clauses



































Relevant Industries

Technology

Manufacturing

Financial Services

Real Estate

Energy

Healthcare

Agriculture

Telecommunications

Mining

Retail

Construction

Transportation

Education

Professional Services

Entertainment

Media

Hospitality

Fast-Moving Consumer Goods

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Investment

Compliance

Risk Management

Corporate Secretariat

Executive Leadership

Board of Directors

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Managing Director

Finance Director

Corporate Secretary

Legal Counsel

Investment Manager

Corporate Finance Manager

Mergers & Acquisitions Director

Business Development Director

Risk Manager

Compliance Officer

Board Director

Investment Analyst

Private Equity Manager

Venture Capital Manager

Corporate Development Manager

Industries








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

Find the exact document you need

Managed Account Agreement

A Nigerian law-governed agreement establishing terms for discretionary investment management services between an investment manager and client.

find out more

Share Partner Agreement

A Nigerian law-governed agreement establishing terms and conditions between business partners regarding share ownership, management rights, and partnership obligations.

find out more

Capital Raising Agreement

A Nigerian law-governed agreement establishing terms and conditions for corporate capital raising, ensuring compliance with local securities regulations and corporate laws.

find out more

Term Sheet For Share Purchase Agreement

A preliminary agreement under Nigerian law outlining key terms and conditions for a proposed share acquisition, serving as the basis for a detailed Share Purchase Agreement.

find out more

Stock Broker Agreement

A Nigerian law-governed agreement between a licensed stockbroker and client establishing terms for securities trading and investment services.

find out more

Short Term Investment Contract

A Nigerian law-governed contract for short-term investments, establishing terms between investors and investment managers while ensuring regulatory compliance.

find out more

Share Trust Agreement

A Nigerian law-governed agreement establishing a trust arrangement for holding and managing shares, defining trustee powers and beneficiary rights.

find out more

Bilateral Investment Agreement

A Nigerian law-governed agreement establishing investment protection and operational frameworks between Nigeria and foreign investors or governments.

find out more

Shareholders Agreement And Share Subscription Agreement

A Nigerian law-governed agreement combining share subscription terms and shareholders' rights and obligations under CAMA 2020.

find out more

Purchase Of Shares Agreement

A Nigerian law-governed agreement detailing the terms and conditions for the sale and purchase of company shares, including transaction specifics and regulatory compliance requirements.

find out more

Startup Investment Term Sheet

A Nigerian law-governed preliminary agreement outlining key terms and conditions for startup investment, serving as the basis for final investment documentation.

find out more

Share Allotment Agreement

A Nigerian law-governed agreement that documents the terms and conditions for the issuance of new shares by a company to subscribers, in compliance with CAMA 2020.

find out more

Preference Share Subscription Agreement

A Nigerian law-governed agreement detailing the terms and conditions for investors subscribing to preference shares in a company, including associated rights and obligations.

find out more

Loss Share Agreement

A Nigerian law-governed agreement establishing risk-sharing arrangements between financial institutions for sharing losses on specified assets, subject to local banking regulations.

find out more

Investment Syndicate Agreement

A Nigerian law-governed agreement establishing an investment syndicate structure, defining investor relationships and operational framework for collective investments.

find out more

Investment Owners Contract

A Nigerian law-governed agreement establishing investment ownership rights, obligations, and governance structures between investors and investment owners.

find out more

International Investment Agreement

A Nigerian law-governed agreement establishing terms and protections for foreign investment in Nigeria, ensuring compliance with local regulations while safeguarding investor interests.

find out more

Agreement For Transfer Of Shares

A Nigerian law-governed agreement for the transfer of company shares from a seller to a buyer, compliant with CAMA 2020.

find out more

Movie Investment Contract

Nigerian-law governed agreement establishing terms for film production investment, including investment structure, rights, and revenue sharing arrangements in compliance with local entertainment and investment regulations.

find out more

Preference Shares Investment Agreement

A Nigerian law-governed agreement setting out terms for preference share investment, including share rights, investment conditions, and investor protections under CAMA 2020.

find out more

Wholesale Real Estate Purchase Agreement

A Nigerian law-governed agreement for wholesale real estate acquisition and subsequent assignment, incorporating Land Use Act requirements and assignment rights.

find out more

Stock Purchase Agreement Term Sheet

A preliminary agreement outlining key terms and conditions for share purchase transactions under Nigerian law, serving as a foundation for the definitive stock purchase agreement.

find out more

Equity Shares Agreement

A Nigerian law-governed agreement that documents the transfer of equity shares between parties, establishing ownership terms and shareholder rights.

find out more

Designated Investment Agreement

A Nigerian law-governed agreement establishing framework and protections for significant investments in Nigeria, including investor rights and regulatory compliance requirements.

find out more

Revenue Sharing Investment Agreement

A Nigerian law-governed agreement establishing terms for investment returns through revenue sharing mechanisms, including investment terms, calculation methods, and compliance requirements.

find out more

Artist Investment Agreement

A Nigerian law-governed agreement establishing terms for investment in an artist's work or career, including revenue sharing and rights management.

find out more

Simple Agreement For Future Equity

A Nigerian law-governed SAFE agreement for early-stage startup investment, providing rights to future equity conversion.

find out more

Share Subscription Agreement And Share Purchase Agreement

A Nigerian law-governed agreement combining share subscription for new shares and purchase of existing shares, facilitating both primary and secondary investment transactions.

find out more

Limited Partnership Term Sheet

A preliminary document under Nigerian law outlining key terms and conditions for establishing a limited partnership, serving as the basis for final partnership agreement negotiations.

find out more

Finder's Fee Agreement For Investment Capital

A Nigerian law-governed agreement establishing terms for an intermediary to secure investment capital for a company, including fee structures and service scope.

find out more

Restaurant Investment Agreement

A Nigerian law-governed agreement structuring investment terms and operational framework for restaurant businesses.

find out more

Real Estate Investment Partnership Agreement

A Nigerian law-governed agreement establishing a partnership structure for real estate investment, defining terms for resource pooling, property management, and profit sharing.

find out more

Debt Investment Agreement

A Nigerian law-governed agreement establishing terms for debt investment, including investment amount, interest rates, repayment terms, and security arrangements.

find out more

Cornerstone Investment Agreement

A Nigerian law-governed agreement establishing terms for a strategic cornerstone investment in a company, including investment terms, rights, and obligations.

find out more

Bond Repurchase Agreement

A Nigerian law-governed agreement establishing terms for the sale and repurchase of bonds between financial institutions, compliant with CBN and SEC regulations.

find out more

Share Purchase Agreement And Shareholders Agreement

A Nigerian law-governed agreement combining share purchase terms and ongoing shareholder relationships, including share transfer provisions and corporate governance arrangements.

find out more

Foreign Investment Agreement

A Nigerian law-governed agreement establishing terms and conditions for foreign investment in Nigeria, ensuring compliance with NIPC Act requirements.

find out more

Equity Stake Agreement

A Nigerian law-governed agreement documenting the terms and conditions of an equity investment, including share transfer mechanics and shareholder rights.

find out more

Property Investment Contract

A Nigerian law-governed agreement establishing terms and conditions for property investment transactions, including investment structure, property rights, and regulatory compliance requirements.

find out more

Partnership Agreement On Investment And Financial Cooperation

A Nigerian law-governed agreement establishing terms for investment partnership and financial cooperation between parties, including capital contributions, profit sharing, and management rights.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it