Document background
The Private Equity Subscription Agreement is a crucial document used when a company seeks to raise capital through private equity investment in the Philippines. This agreement is typically employed when a company wishes to issue new shares to private equity investors in exchange for capital investment. The document must be structured to comply with Philippine corporate and securities laws, including the Revised Corporation Code and Securities Regulation Code. It contains detailed provisions about the investment terms, subscriber's rights, company warranties, and closing conditions. Special attention must be paid to foreign ownership restrictions if the investor is non-Filipino. The agreement serves as the foundational document for the investment relationship and often works in conjunction with other transaction documents such as shareholders' agreements and disclosure schedules.
