Document background
The Equity Investment Agreement is a crucial document used in Pakistani corporate transactions when an investor seeks to acquire an ownership stake in a company through share subscription or purchase. It serves as the primary contract governing the relationship between investors and the company, typically used in venture capital, private equity investments, or strategic corporate investments. The agreement must comply with Pakistani legislation, including the Companies Act 2017, Securities Act 2015, and where applicable, foreign investment regulations. It covers essential aspects such as investment terms, shareholder rights, governance structures, exit mechanisms, and protective provisions. This document is particularly important in the Pakistani context where the legal framework requires specific provisions for share transfers, foreign investments, and corporate governance. The agreement typically requires approval from relevant regulatory bodies such as the Securities and Exchange Commission of Pakistan (SECP) and may need additional provisions if foreign investment is involved.
