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Company Equity Share Agreement
"I need a Company Equity Share Agreement under Pakistani law for our tech startup, where a venture capital firm will acquire 25% ownership through new shares issuance, with specific provisions for board representation and veto rights on major decisions."
1. Parties: Identification of the Company, existing shareholders, and new shareholder(s)
2. Background: Context of the transaction, current shareholding structure, and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Share Subscription Details: Number, class, and par value of shares being issued/transferred
5. Consideration: Purchase price, payment terms, and payment mechanism
6. Completion: Conditions precedent, completion obligations, and timing
7. Representations and Warranties: Standard representations by both parties regarding capacity, authority, and share ownership
8. Share Rights: Voting rights, dividend rights, and other rights attached to the shares
9. Transfer Restrictions: Limitations on future transfer of shares, right of first refusal, tag-along and drag-along rights
10. Corporate Governance: Board representation, reserved matters, and management rights
11. Confidentiality: Obligations regarding confidential information
12. Dispute Resolution: Mechanism for resolving disputes, including jurisdiction and governing law
13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Pre-emptive Rights: Rights of existing shareholders to maintain their percentage ownership in future share issuances
2. Anti-dilution Protection: Protection for investors against future down rounds, used in investment agreements
3. Put and Call Options: Rights to force purchase or sale of shares under specific circumstances
4. Foreign Investment Provisions: Special provisions required when involving foreign investors, including compliance with FERA
5. Preference Share Rights: Special rights and preferences if dealing with preference shares
6. Exit Rights: Specific provisions regarding IPO, strategic sale, or other exit mechanisms
7. Employee Share Provisions: Special terms for employee share schemes if relevant
8. Dividend Policy: Specific arrangements regarding dividend declarations and distributions
1. Schedule 1 - Share Capital Structure: Details of existing and post-completion shareholding structure
2. Schedule 2 - Subscription Price Calculation: Detailed calculation of share price and valuation metrics
3. Schedule 3 - Conditions Precedent: List of all conditions to be satisfied before completion
4. Schedule 4 - Completion Requirements: Detailed list of documents and actions required at completion
5. Schedule 5 - Reserved Matters: List of decisions requiring special approval
6. Schedule 6 - Company Information: Key corporate and financial information about the company
7. Appendix A - Board Resolution: Format of board resolution approving share issuance
8. Appendix B - Share Certificate: Format of share certificate to be issued
Authors
Technology
Manufacturing
Financial Services
Healthcare
Real Estate
Retail
Energy
Telecommunications
Professional Services
Education
Agriculture
Mining
Construction
Transportation
Media and Entertainment
Legal
Finance
Corporate Secretarial
Compliance
Executive Leadership
Investment
Business Development
Corporate Affairs
Risk Management
Shareholder Relations
Chief Executive Officer
Chief Financial Officer
Company Secretary
Legal Counsel
Corporate Lawyer
Investment Manager
Business Development Director
Board Director
Compliance Officer
Finance Director
Managing Director
Shareholder Relations Manager
Investment Banker
Private Equity Manager
Venture Capital Manager
Corporate Governance Officer
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