Document background
The Stock Investment Agreement serves as the primary legal instrument for equity investments in Philippine corporations, whether from domestic or foreign investors. This document is essential when a company seeks to raise capital through the sale of its shares or when investors wish to acquire an equity stake in a business. It must comply with the Securities Regulation Code (Republic Act No. 8799), the Revised Corporation Code of the Philippines, and relevant SEC regulations. The agreement typically includes detailed provisions on share valuation, transfer restrictions, shareholder rights, and corporate governance requirements. For foreign investors, special attention is paid to foreign ownership restrictions under Philippine law. The document is particularly crucial for startups seeking investment, established companies raising additional capital, or in merger and acquisition scenarios.
