Investment For Equity Agreement for Australia

Investment For Equity Agreement Template for Australia

An Investment For Equity Agreement under Australian law is a legally binding document that outlines the terms and conditions under which an investor provides capital to a company in exchange for equity ownership. This agreement, governed by Australian corporate and securities law, details the investment amount, share class and quantity, valuation, investor rights, warranties, and completion requirements. It includes crucial provisions for both parties' protection and ensures compliance with Australian regulatory requirements, including those under the Corporations Act 2001 (Cth) and relevant ASIC regulations.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Generate a Bespoke Document

1. Select your governing law:

2. Enter your key requirements:

3. Create your document to edit, review or download

Download a Standard Template

Get our Australia-compliant Investment For Equity Agreement

4.6 / 5

4.8 / 5

Alternatively: Run an advanced review of an existing
Investment For Equity Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

Upload your Doc

What is a Investment For Equity Agreement?

The Investment For Equity Agreement is a critical document used when a company seeks to raise capital by offering shares to investors. This agreement, structured under Australian law, serves as the primary document governing the relationship between the investor and the company. It is particularly important for startups, scale-ups, and established companies seeking growth capital. The agreement covers essential elements including the investment amount, share price and quantity, investor rights (such as board representation or veto rights), warranties, and completion mechanics. It must comply with Australian corporate law requirements, particularly the Corporations Act 2001 (Cth) and ASIC regulations, and typically includes provisions for future capital raises, exit mechanisms, and shareholder protections.

What sections should be included in a Investment For Equity Agreement?

1. Parties: Identification of the investor(s) and the company, including ACN/ABN and registered addresses

2. Background: Context of the investment, including company's business and purpose of the investment

3. Definitions: Key terms used throughout the agreement

4. Investment Terms: Details of the investment amount, payment terms, and conditions precedent

5. Share Issuance: Number and class of shares to be issued, price per share, and timing of issuance

6. Completion: Process and requirements for completing the investment transaction

7. Company Warranties: Representations and warranties given by the company regarding its status, operations, and financial position

8. Investor Warranties: Representations and warranties given by the investor regarding their capacity to invest

9. Confidentiality: Obligations regarding confidential information

10. Shareholder Rights: Basic rights attached to the shares being issued

11. Dispute Resolution: Process for resolving disputes between parties

12. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction

What sections are optional to include in a Investment For Equity Agreement?

1. Board Representation: Rights of the investor to appoint directors - include when the investment size warrants board representation

2. Anti-dilution Protection: Provisions protecting the investor from dilution in future capital raises - typically included for significant investments

3. Tag-along Rights: Right of the investor to join in the sale of shares by other shareholders - important for minority investor protection

4. Drag-along Rights: Right of majority shareholders to force minority shareholders to join in a sale - include when requested by major investors

5. Dividend Rights: Special dividend rights or preferences - include when negotiated as part of the investment terms

6. Information Rights: Rights to receive specific company information and reports - important for significant investments

7. Pre-emptive Rights: Rights to participate in future share issues - typically included for substantial investments

8. Vesting Provisions: If shares are subject to vesting conditions - typically used for founder or employee investments

What schedules should be included in a Investment For Equity Agreement?

1. Schedule 1 - Company Details: Detailed information about the company including corporate structure, subsidiaries, and material contracts

2. Schedule 2 - Capital Structure: Complete breakdown of the company's share capital before and after the investment

3. Schedule 3 - Warranties: Detailed list of company warranties and any limitations

4. Schedule 4 - Key Terms of Issue: Detailed terms of the share class being issued including rights and restrictions

5. Schedule 5 - Completion Checklist: List of actions and documents required for completion

6. Appendix A - Share Certificate: Pro forma share certificate to be issued

7. Appendix B - Board Resolution: Pro forma board resolution approving the share issue

8. Appendix C - Deed of Accession: If required for existing shareholders agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Cost

Free to use

Relevant legal definitions

Clauses

Relevant Industries

Technology

Healthcare

Renewable Energy

Financial Services

E-commerce

Biotechnology

Software Development

Real Estate

Manufacturing

Professional Services

Media and Entertainment

Agriculture

Education Technology

Consumer Goods

Infrastructure

Relevant Teams

Legal

Finance

Corporate Development

Executive Leadership

Board of Directors

Investment

Compliance

Corporate Secretariat

Risk Management

Treasury

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

General Counsel

Investment Manager

Corporate Lawyer

Financial Controller

Company Secretary

Board Director

Managing Director

Venture Capital Associate

Private Equity Manager

Investment Analyst

Corporate Development Manager

Finance Director

Find the exact document you need

No matches found.