Document background
The Equity Investment Agreement is a crucial document used when a company seeks to raise capital by selling shares to investors in New Zealand. It's typically employed in various funding rounds, from seed investments to later-stage capital raises, and must comply with New Zealand's regulatory framework, including the Companies Act 1993 and Financial Markets Conduct Act 2013. The agreement comprehensively covers the investment terms, share rights, governance provisions, warranties, and investor protections. It's particularly important for startups and growing companies seeking external investment, as it establishes the legal foundation for the relationship between the company and its investors while ensuring all parties' interests are protected and clearly defined. The document must be carefully drafted to balance the interests of new investors with existing shareholders while maintaining compliance with New Zealand's corporate and securities laws.
