Representations and guarantees of the companyOur investor will probably make concrete demands on what they wish to represent, none of which should surprise after the negotiation and timing phase of the investment. The guarantees contained in an equity subscription contract can be broad, for example. B a guarantee that the company has the authority to conclude the contract, that all relevant information has been made available to the investor and that the directors or founders do not know of any additional information that could influence the investment. Guarantees can also be very specific, for example. B a guarantee that the company has the necessary licenses and/or intellectual property for its activities. Previous ConditionsThe terms of the precedent will establish all the conditions that one of the parties must meet before the agreement comes into force. This may include directors of the company who make the appropriate decisions or, possibly, deeds on behalf of the buyer that are necessary to become a member of the company. ConfidentialityThis clause speaks for itself. Both parties will generally agree to a reciprocal confidentiality clause. SlicesThe slice clause will contain the details of the agreement that normally appear in the account sheet: a share subscription contract defines who, how, what and when a share issue, but more importantly, that it exposes all guarantees and insurance to an investor. Representations and guarantees from the buyer/investorThe share subscription contract often contains different insurances and guarantees from the investor.
What do I do? Contact us if you would like more information about establishing a sharing agreement. Our lawyers at You Legal are happy to help you in every way possible. Legal advice should be sought before taking action on specific issues.