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Shareholder Investment Agreement for Philippines

Shareholder Investment Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions of an investment in a company through share acquisition. The document outlines the rights and obligations of new investors and existing shareholders, including investment amounts, share allocation, corporate governance provisions, and shareholder protections. It incorporates specific requirements under Philippine corporate law, securities regulations, and foreign investment restrictions where applicable. The agreement typically includes detailed provisions on board representation, voting rights, share transfer restrictions, and exit mechanisms, all structured to comply with the Philippine Revised Corporation Code and related regulations.

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Shareholder Investment Agreement

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What is a Shareholder Investment Agreement?

The Shareholder Investment Agreement is a crucial document used when a company seeks to bring in new investors while establishing clear terms for the investment relationship. It is particularly important in the Philippine context, where both domestic and foreign investments must comply with specific regulatory requirements under the Revised Corporation Code and Foreign Investments Act. The agreement typically comes into play during funding rounds, strategic investments, or when restructuring ownership, serving as the primary document governing the relationship between the company, its existing shareholders, and new investors. It details critical aspects such as investment terms, shareholder rights, corporate governance mechanisms, and exit provisions, while ensuring compliance with Philippine securities laws and regulatory requirements. This document is essential for protecting all parties' interests and providing a clear framework for the company's ownership and management structure.

What sections should be included in a Shareholder Investment Agreement?

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

2. Background: Context of the investment, including brief company history and purpose of the investment

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

4. Investment Terms: Details of the investment including share price, number of shares, payment terms, and closing conditions

5. Representations and Warranties: Statements of fact by the company and existing shareholders about the company's condition

6. Pre-Completion Obligations: Actions required before the investment is completed

7. Completion Mechanics: Process and requirements for completing the investment

8. Shareholder Rights: Rights attached to shares, including voting, dividends, and information rights

9. Corporate Governance: Board composition, management structure, and decision-making processes

10. Transfer Restrictions: Limitations on share transfers and processes for permitted transfers

11. Pre-emptive Rights: Rights of existing shareholders to maintain their percentage ownership

12. Tag-Along and Drag-Along Rights: Rights related to sale of shares to third parties

13. Confidentiality: Obligations regarding confidential information

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

15. General Provisions: Standard legal provisions including notices, amendments, governing law, and dispute resolution

What sections are optional to include in a Shareholder Investment Agreement?

1. Anti-Dilution Protection: Protection for investors against future share issuances at lower valuations

2. Liquidation Preference: Priority rights in case of liquidation or exit events

3. Strategic Rights: Special rights for strategic investors, such as supply agreements or technology licenses

4. Employee Share Scheme: Provisions for employee share ownership programs

5. Non-Compete and Non-Solicitation: Restrictions on competitive activities and employee solicitation

6. Foreign Investment Compliance: Special provisions required for foreign investors under Philippine law

7. Founder Commitments: Specific obligations and commitments of founders

8. IPO Rights: Rights and procedures in case of an initial public offering

What schedules should be included in a Shareholder Investment Agreement?

1. Capital Structure: Details of the company's share capital before and after investment

2. Particulars of the Company: Company details including registration information, directors, and officers

3. Warranties: Detailed warranties about the company's business and affairs

4. Reserved Matters: List of decisions requiring special shareholder or board approval

5. Form of Deed of Adherence: Template for new shareholders joining the agreement

6. Business Plan: Company's business plan and financial projections

7. Key Performance Indicators: Metrics for measuring company performance

8. Completion Deliverables: List of documents and actions required at completion

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

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




















































Clauses








































Relevant Industries

Technology

Manufacturing

Real Estate

Financial Services

Healthcare

Retail

E-commerce

Agriculture

Energy

Infrastructure

Transportation

Education

Food and Beverage

Telecommunications

Mining

Construction

Relevant Teams

Legal

Corporate Finance

Investment

Compliance

Corporate Governance

Executive Leadership

Business Development

Corporate Strategy

Risk Management

Shareholder Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Corporate Secretary

Investment Director

Legal Counsel

Corporate Lawyer

Investment Manager

Board Director

Managing Director

Compliance Officer

Company Director

General Counsel

Investment Analyst

Corporate Development Manager

Shareholder Relations Manager

Due Diligence Officer

Business Development Director

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

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