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A Preference Share Subscription Agreement is commonly used in Singapore when companies seek to raise capital by issuing preferred equity to investors. This document type is particularly relevant for growth-stage companies and investment rounds where investors require preferential rights over ordinary shareholders. The agreement must comply with Singapore's regulatory framework, particularly the Companies Act and Securities and Futures Act. It typically includes detailed terms about share rights, subscription price, completion mechanics, and investor protections. This document is essential for both private and public companies issuing preference shares, providing a clear legal framework for the investment transaction.
