Document background
The Stock Subscription Agreement is a crucial document used in South African corporate transactions when a company issues new shares to investors. This agreement is essential for both private and public companies seeking to raise capital through share issuance, ensuring compliance with the Companies Act 71 of 2008 and other relevant South African legislation. It outlines the complete transaction structure, including the number and class of shares being issued, subscription price, payment mechanisms, conditions precedent, and closing requirements. The agreement also contains important protective provisions such as representations and warranties, undertakings, and indemnities. It's particularly important for documenting foreign investment in South African companies, requiring careful consideration of exchange control regulations and other regulatory requirements.
