Ƶ

Equity Commitment Letter for Singapore

Equity Commitment Letter Template for Singapore

An Equity Commitment Letter under Singapore law is a legally binding document where one party commits to providing equity funding for a specific transaction or purpose. It follows Singapore's common law principles and regulatory framework, particularly under the Companies Act and Securities and Futures Act. The document outlines the commitment amount, conditions for funding, and mechanics of the investment, while ensuring compliance with Singapore's corporate and securities regulations.

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 Commitment Letter

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

What is a Equity Commitment Letter?

The Equity Commitment Letter is a crucial document in Singapore's investment landscape, typically used in M&A transactions, private equity investments, and project financing. It provides certainty to transaction parties by legally binding an investor to fund a specific amount of equity upon satisfaction of stated conditions. Under Singapore law, these letters must comply with local corporate and securities regulations, including MAS guidelines where applicable. The document typically includes detailed funding mechanics, conditions precedent, and termination rights, serving as a cornerstone document in complex transaction structures.

What sections should be included in a Equity Commitment Letter?

1. Date and Parties: Identification of commitment provider and recipient, including full legal names and addresses

2. Reference Transaction: Details of the underlying transaction requiring equity commitment, including target company and transaction structure

3. Commitment Amount: Specific amount of equity being committed, currency, and any adjustments

4. Funding Conditions: Conditions precedent to funding obligation, including closing conditions of main transaction

5. Funding Mechanics: Process and timing for providing the committed funds, including notice requirements

6. Representations and Warranties: Basic representations regarding capacity, authority, and enforceability

7. Termination Provisions: Circumstances under which commitment may terminate, including long-stop date

8. Governing Law: Singapore law provisions and jurisdiction clauses

What sections are optional to include in a Equity Commitment Letter?

1. Regulatory Approvals: Include when transaction requires specific regulatory clearances or approvals

2. Currency Provisions: Include for cross-border transactions with currency conversion requirements

3. Alternative Funding Sources: Include when multiple funding sources or backup commitments are contemplated

4. Third Party Rights: Include when rights under the letter are intended to be enforced by third parties

What schedules should be included in a Equity Commitment Letter?

1. Form of Funding Notice: Standard template for requesting drawdown of committed funds

2. Corporate Authority Evidence: List of required corporate approvals and authorizations

3. Transaction Summary: Brief overview of the underlying transaction structure and key terms

4. Conditions Precedent Checklist: List of conditions that must be satisfied before funding obligation arises

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

Singapore

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




























Clauses























Industries

Companies Act (Cap. 50): Primary legislation governing corporate entities, capital structure, share issuance/transfer, and directors' duties in Singapore. Forms the fundamental framework for corporate operations and equity transactions.

Securities and Futures Act (Cap. 289): Regulates securities offerings, trading, market conduct, and disclosure requirements. Essential for ensuring compliance in equity transactions and investor protection.

Financial Advisers Act (Cap. 110): Governs the provision of financial advisory services and related activities. Relevant when financial advice is provided as part of the equity commitment process.

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore covering corporate finance, investment requirements, and restrictions for equity transactions.

Contract Law: Common law principles governing contract formation, consideration, and enforceability, which are fundamental to the validity of equity commitment letters.

Stamp Duties Act (Cap. 312): Legislation governing stamp duties applicable to share transfers and related documentary requirements in equity transactions.

Income Tax Act (Cap. 134): Tax legislation covering implications of equity investments and withholding tax considerations for parties involved in the transaction.

Competition Act (Cap. 50B): Regulates merger control and anti-competitive practices, relevant when equity commitments might trigger competition law thresholds.

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data in Singapore, applicable when handling personal information during the transaction process.

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

Shareholders Agreement And Share Subscription Agreement

A Singapore law-governed agreement combining share subscription terms and shareholders' rights and obligations framework.

Download

Redeemable Preference Share Agreement

A Singapore law-governed agreement establishing terms for redeemable preference shares, including shareholder rights and redemption conditions.

Download

Purchase Term Sheet

A Singapore law-governed document outlining key commercial terms for a proposed purchase transaction.

Download

Purchase Of Shares Agreement

A Singapore law-governed agreement for the sale and purchase of shares in a company, detailing transfer terms and conditions.

Download

Memorandum Of Agreement For Investment

A Singapore-governed legal agreement documenting investment terms and conditions between investors and investee companies.

Download

Letter Of Investment Agreement

A Singapore-governed formal agreement documenting investment terms between an investor and a company, including investment amount, shareholding, and parties' rights.

Download

Joint Investment Agreement

A Singapore-law governed agreement establishing terms for multiple parties to jointly invest in and manage a shared investment venture.

Download

Investment Repayment Agreement

A Singapore-law governed agreement detailing investment repayment terms, conditions, and obligations between investors and borrowers.

Download

Investment Club Agreement

A Singapore-law governed agreement establishing the structure and rules for a collective investment group, including membership, governance, and investment policies.

Download

Investment Agreement Form

A Singapore-compliant legal document establishing terms and conditions for investment transactions between investors and companies.

Download

Company Investment Agreement

A Singapore-law governed agreement defining terms and conditions for company investment, including share rights and investor protections.

Download

Capital Investment Agreement

A legal agreement governed by Singapore law that establishes terms for capital investment in exchange for company equity or securities.

Download

Business Investment Contract

A Singapore law-governed agreement establishing terms and conditions for business investment, including capital injection, ownership rights, and investor protections.

Download

Startup Investment Term Sheet

A preliminary agreement outlining key terms for startup investment in Singapore, serving as a basis for detailed investment documentation.

Download

Share Allotment Agreement

A Singapore-law governed agreement documenting the issuance of new shares by a company to subscribers, detailing terms and conditions of the share allotment.

Download

Return On Investment Contract

A Singapore-law governed agreement establishing terms for investment arrangements and expected returns, compliant with local financial regulations.

Download

Project Investment Agreement

A legal agreement governing project investment terms and stakeholder relationships under Singapore law.

Download

Preference Share Subscription Agreement

A Singapore law-governed agreement setting out terms for subscription of preference shares, including rights and obligations of the company and investors.

Download

Preference Share Agreement

A Singapore law-governed agreement setting out terms and conditions for preference share issuance, including shareholder rights and privileges.

Download

Loss Share Agreement

A Singapore-law governed agreement establishing how parties will share specified losses, typically used in financial transactions.

Download

Investment Mandate Agreement

A Singapore-law governed agreement appointing an investment manager to manage client assets under specified terms and conditions.

Download

Investment Agreement For Small Business

A Singapore-law governed agreement establishing terms for investment in a small business, including investment structure, rights, and obligations.

Download

Agreement For Transfer Of Shares

A Singapore law-governed agreement that documents the transfer of shares between parties in a Singapore company.

Download

Agreement For Sale Of Shares

A Singapore law-governed agreement for the sale and transfer of shares between parties, setting out terms, conditions, and completion requirements.

Download

Investment Agreement Letter

A Singapore-law governed document outlining investment terms and conditions between investors and companies.

Download

Stock Borrowing And Lending Agreement

A Singapore-law governed agreement facilitating the temporary transfer of securities between parties, subject to MAS regulations and local securities laws.

Download

Private Equity Fund Agreement

A Singapore-law governed agreement establishing and regulating a private equity fund, its operations, and relationships between managers and investors.

Download

Simple Agreement For Future Equity Term Sheet

A Singapore-law governed term sheet outlining key terms for future equity rights in exchange for current investment.

Download

LLC Share Purchase Agreement

A Singapore law-governed agreement for the purchase and sale of LLC shares, detailing transaction terms and party obligations.

Download

Movie Investment Contract

A Singapore-law governed agreement establishing terms for film project investment, including funding terms and profit-sharing mechanisms.

Download

Debenture Purchase Agreement

A Singapore law-governed agreement for the issuance and purchase of debentures, outlining terms of subscription and security arrangements.

Download

Preference Shares Investment Agreement

A Singapore law-governed agreement detailing the terms of preference share investment, including investor rights and company obligations.

Download

Designated Investment Agreement

A Singapore-compliant agreement governing designated investments under MAS regulations.

Download

Founders Stock Agreement

A Singapore-law agreement defining share ownership terms and conditions between company founders.

Download

Revenue Sharing Investment Agreement

A Singapore-law governed agreement establishing terms for revenue-based investment returns between investors and companies.

Download

Limited Partnership Term Sheet

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

Download

Equity Share Agreement Startup

A Singapore-law governed agreement defining terms and conditions for issuing startup company shares to investors.

Download

Finder's Fee Agreement For Investment Capital

A Singapore-governed agreement establishing terms for finder's services in sourcing investment capital, including compensation and responsibilities.

Download

Investment Trust Contract

A legal document establishing an investment trust under Singapore law, defining asset management terms and beneficiary rights.

Download

Real Estate Investment Partnership Agreement

A Singapore-governed agreement establishing terms for real estate investment partnerships, including capital structure, management, and profit sharing arrangements.

Download
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