Document background
The Share Subscription Agreement is a crucial document used in German corporate transactions when a company seeks to issue new shares to investors as part of capital raising activities. It serves as the primary legal instrument documenting the terms under which new shares are issued and subscribed to, ensuring compliance with German corporate law requirements, particularly the Aktiengesetz (AktG) or GmbH-Gesetz depending on the company type. The document is essential for both private and public companies seeking to increase their share capital, whether for growth capital, strategic investment, or other corporate purposes. It includes detailed provisions on share valuation, subscription mechanics, representations and warranties, and completion requirements, while incorporating necessary safeguards for both the issuing company and the subscriber. The agreement must be structured to comply with German corporate law formalities, including any necessary notarization requirements and shareholders' approval processes.
