Document background
The Preferred Equity Agreement is a crucial document used when a Belgian company seeks to raise capital by issuing shares with preferential rights and privileges to investors. This agreement, governed by Belgian law and specifically the Belgian Code of Companies and Associations, is commonly used in growth-stage companies or companies requiring significant capital investment. The document details all aspects of the preferred equity investment, including economic rights, governance rights, protective provisions, and exit mechanisms. It's particularly important as it must balance the interests of new investors seeking preferential treatment with existing shareholders' rights, all while ensuring compliance with Belgian corporate law requirements and financial regulations. The agreement typically involves detailed negotiations between parties and requires careful consideration of tax implications and corporate governance structures.
