Document background
The Preference Share Subscription Agreement is a crucial document used when a company seeks to issue preference shares to investors under Dutch law. This agreement is commonly utilized in financing rounds, corporate restructurings, or strategic investments where investors require preferential rights over ordinary shareholders. The document must comply with specific requirements of Dutch corporate law, including mandatory notarial involvement for share issuance. It typically includes detailed provisions about the nature of the preference shares, subscription terms, conditions precedent, completion mechanics, and various rights attached to the shares such as dividend preferences and voting rights. The agreement is particularly important for Dutch companies seeking structured financing while maintaining existing control structures, as preference shares often offer a balance between investment returns and limited corporate governance rights.
