Document background
A Shareholder Subscription Agreement is a fundamental document used when a company wishes to issue new shares to investors, whether for raising capital, bringing in strategic partners, or expanding ownership. This document is particularly important in the Philippine context, where it must comply with specific requirements under the Corporation Code and Securities Regulation Code. The agreement outlines the complete transaction framework, from share pricing and payment terms to investor rights and regulatory compliance. It's commonly used in both private and public companies, though public offerings require additional regulatory considerations. The document becomes especially critical when dealing with foreign investors due to Philippine foreign ownership restrictions in certain sectors. A well-drafted Shareholder Subscription Agreement helps prevent future disputes by clearly documenting the parties' rights and obligations, including any special rights granted to the subscriber.
