¶¶Òõ¶ÌÊÓƵ

The Stock Investment Agreement serves as a crucial legal framework for equity investments in Nigerian companies, whether for private placements, startup funding, or corporate expansions. This document is essential when investors are acquiring shares in a company, requiring careful consideration of Nigerian corporate law, particularly the Investment and Securities Act 2007 and CAMA 2020. It typically includes detailed provisions on share valuation, transfer restrictions, investor rights, and corporate governance requirements. The agreement must comply with Securities and Exchange Commission (SEC) regulations and may require specific provisions for foreign investors under Nigerian investment laws. The document is particularly important for protecting investor interests while ensuring the company maintains operational flexibility and compliance with local regulations.

1. Parties: Identification of the investor(s) and the company, including their full legal names, registration details, and addresses

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Investment Terms: Details of the investment amount, number and class of shares, price per share, and payment terms

5. Conditions Precedent: Conditions that must be satisfied before the investment becomes effective

6. Completion: Process and requirements for completing the investment transaction

7. Representations and Warranties: Statements of fact and assurances from both the company and the investor

8. Investor Rights: Rights granted to the investor, including voting rights, board representation, and information rights

9. Transfer Restrictions: Limitations on the transfer of shares and pre-emptive rights

10. Covenants: Ongoing obligations of the company and other shareholders

11. Confidentiality: Obligations regarding confidential information

12. Term and Termination: Duration of the agreement and circumstances for termination

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

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