Question 1

What does this service comprise?

Accepted Answer

Our custom Subscription Agreement allows for any manner of custom requirements around the subscription to be included in the agreement, including subscription price, payment terms, conditions precedent, and shareholder rights.

Question 2

What is a Share Subscription Agreement?

Accepted Answer

A Share Subscription Agreement is a contract where an investor agrees to subscribe for (purchase) newly issued shares in a company. Unlike a share sale (which involves existing shares), a subscription involves the company issuing new shares in exchange for capital injection.

Question 3

How does a Share Subscription Agreement differ from a Sale of Shares Agreement?

Accepted Answer

The key difference lies in the source of shares and where the money goes. In a Share Subscription Agreement, the company issues NEW shares to the investor, and the subscription money goes directly into the company's bank account as working capital. This increases the company's share capital and dilutes existing shareholders proportionally. In a Sale of Shares Agreement, an existing shareholder sells their EXISTING shares to a buyer, and the purchase price goes to the selling shareholder personally—not to the company. The company's share capital remains unchanged, and there is no dilution of other shareholders. Think of subscription as 'investing in the company' versus sale as 'buying out another shareholder'.

Question 4

When would I need this agreement?

Accepted Answer

You need a Share Subscription Agreement when: raising capital from new investors, bringing in new shareholders through investment, conducting a funding round, or issuing shares in exchange for services or assets.

Question 5

How does this relate to a Shareholders Agreement?

Accepted Answer

A Share Subscription Agreement governs the investment transaction itself. A Shareholders Agreement governs the ongoing relationship between shareholders. Often both are needed—the subscription agreement for the investment, and an updated shareholders agreement to include the new shareholder. We also offer [Shareholders Agreements](/southafrica/southafrica-custom-shareholders-agreement).

Question 6

How long does delivery take?

Accepted Answer

Standard delivery is 3 business days from when we receive your completed questionnaire. If you need your Share Subscription Agreement sooner, we offer an Express Delivery option which guarantees delivery within 1 business day. You can select Express Delivery as an add-on during checkout.

Question 7

What if I need changes to my agreement?

Accepted Answer

Your order includes 2 rounds of revisions at no additional cost, which must be requested within 1 week of receiving your draft. This ensures you have ample opportunity to review the document and request any adjustments. Additional revision rounds beyond this can be arranged at a nominal fee.

Question 8

Who will draft my agreement?

Accepted Answer

Your Share Subscription Agreement will be prepared by a qualified South African attorney with a minimum of 12 years of post-qualification experience in corporate and investment law. Our attorney ensures compliance with the Companies Act and proper corporate governance.

Question 9

What information will I need to provide?

Accepted Answer

After purchase, you'll receive a detailed questionnaire asking about the company details, subscriber information, number and class of shares being subscribed, subscription price and payment terms, conditions precedent, warranties, and any special rights attaching to the shares.

Custom Share Subscription
Agreement

Agreement Details

Who Is This For

Tailored To Your Needs

Prepared By Experts

Benefits of our custom Subscription of Shares Agreement

Clear Subscription Terms

Investor Protection

Conditions Precedent

Attorney Drafted

Amendments Included

Companies Act Compliant

Join 6000+ Businesses Who Trust Us

Meet Some Of Your Expert Team

Tamara

Alicia

Johanna

Ayesha

Geraint

Kyle

Drew

Chris

Antonella

FAQs

Custom Share SubscriptionAgreement