Document background
The Term Sheet For Investors is a crucial document in the Philippine investment landscape, typically used during the preliminary stages of investment negotiations between companies seeking funding and potential investors. It serves as a roadmap for the eventual definitive agreements while capturing the material terms of the proposed investment. The document must comply with Philippine corporate and securities laws, including the Revised Corporation Code, Securities Regulation Code, and where applicable, the Foreign Investments Act. Term Sheets are particularly important in establishing clear expectations regarding valuation, governance rights, exit mechanisms, and investor protections, while considering industry-specific regulations and ownership restrictions that may apply under Philippine law. This document is typically non-binding except for certain provisions such as confidentiality and exclusivity, but its terms form the basis for the final investment agreements.
