Subscription letter: shares
Subscription letter for the application by a subscriber for the allotment of new shares in a private limited company.
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When do I use this document?
- for the allotment of new shares in a private limited company
- for a subscription for shares in a company for cash
- for a standard application for new shares without a separate subscription or investment agreement
What are the key features?
- alternative subscription letters depending on whether the subscriber is an individual or a company
- to be completed with information about the company issuing shares and the subscriber, the number of shares and price per share
Following the subscription, the details of the shareholder and issued shares should be recorded in the company’s register of allotments and register of members – see Statutory Registers Template
What other documents are available?
For fuller forms forms of share subscription agreement and explanations for their use, see Subscription Agreement Template
When do I use this document?
- for a share sale transaction
- where confidential information about the target company will be disclosed to a potential buyer
- for a longer form NDA with strong legal protections for the seller and target company
What are the key features?
- 17 clauses over 9 pages
- definitions of Confidential Information and Proposed Transaction
- confidentiality obligations
- authorised recipients of Confidential Information
- circumstances permitting compulsory disclosure
- procedure for returning Confidential Information to the seller
- prohibition on the buyer poaching the target company’s employees
- contractual remedies for breach of the NDA, including contractual indemnity in favour of the seller and target company
- duration of agreement
What else do I need to know?
It’s quite common that some clauses of an NDA may be resisted by the receiving party. The guidance notes which accompany this document explain how provisions, such as the following, might be negotiated to reach mutual agreement.
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- non-solicitation covenants
- a contractual indemnity for breach of the confidentiality obligations
- the duration of the agreement
The guidance notes which accompany the document explain how these provisions might be negotiated to reach agreement.
What other docs are available?
For a shorter form of confidentiality agreement for a company sale transaction, see
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Updated by a lawyer on 15/08/2024
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