Description

A Subscription Agreement is entered into when a new or existing shareholder is allotted shares in an existing company.  At this time, if a Shareholders’ Agreement has not already been entered into, it should occur simultaneously with the signing of the Subscription Agreement.  Alternately, the incoming Shareholder will need to agree to be bound to the terms of the existing Shareholders’ Agreement.  This Agreement contains inter alia: i) Subscription Price; ii) Warranties; and iii) Transfer provisions regarding shares.