Document background
The Equity Investment Agreement is a crucial document used when an investor seeks to acquire ownership stakes in a Philippine company through share subscription or purchase. This agreement is essential for both domestic and foreign investments, subject to Philippine foreign ownership restrictions where applicable. It details the investment terms, shareholder rights, governance structures, and exit mechanisms while ensuring compliance with the Revised Corporation Code, Securities Regulation Code, and other relevant Philippine regulations. The document typically follows investments resulting from successful negotiations and due diligence, serving as the primary agreement that governs the relationship between the investor and the company. It includes provisions for share valuation, transfer restrictions, board representation, reserved matters requiring investor approval, and various investor protection mechanisms. The agreement's complexity often reflects the size of the investment and the sophistication of the parties involved.
