A share subscription contract would be necessary if the company wants to raise funds and in particular by issuing shares, by not diluting the share of the owners. He uses that money for his own purposes. Normally, the founders of the company use their own money at the beginning of the business, but ultimately, the founders must look for money from angel investors or friends or strangers who must be spent in exchange for shares for the investment. When one of the founders sells his shares, a share purchase agreement is executed to record the transfer between the founders of the sale and the incoming investor. In such cases, the consideration is paid to the founders and that part of the money is not invested in the company. But if the company is not willing to dilute the already held stake of investors and founders, then a SSA is preferred. Preference is also given in the early stages when the founders do not want to sell their shares so early. Upon completion of this agreement, the person who subscribes to the shares becomes the shareholder of the company. This can be done to raise capital either through the public offering or through private placement.
The contract is executed by both parties from the execution date. The contract may be terminated in a manner described here: in the event of a dispute between the parties over the interpretation of this agreement or an omission or violation of either party, the content of a share subscription contract in India is settled definitively by an arbitration procedure: – The content of a share underwriting contract in India is based on the type of transaction , that is, the number of shares, i.e. the number of shares. depending on the type of transaction, i.e. the number of shares, i.e. the number of shares, the number of shares, i.e. the number of shares, i.e. the number of shares, the price, the tranches, the role, the responsibility and the responsibility of the company and the investors. In this context, there are certain common provisions that must be included in each share subscription contract in India, regardless of the content or conditions specified in it. b. at least three arbitrators are appointed, at least one arbitrator must be appointed by each party, the president appointed by the other designated arbitrators and who disagrees with the [President of the International Chamber of Commerce]; When a new investor intends to invest, the company may issue shares at the same valuation or higher valuation, subject to the agreement of the existing investor for the issuance of new shares and for any waiver of their pre-emption rights.