Document background
The Preferred Stock Purchase Agreement is a crucial document used in private equity and venture capital transactions in the Netherlands when companies seek to raise capital by issuing preferred shares to investors. This agreement is particularly common in growth-stage companies and scale-ups looking to secure significant investment while maintaining certain controls over ownership and governance. The document must comply with Dutch corporate law requirements and typically includes detailed provisions about share classes, voting rights, board representation, anti-dilution protections, and exit rights. It's essential for documenting the terms of investment, protecting both the company's and investors' interests, and establishing a framework for future corporate governance. The agreement often works in conjunction with a shareholders' agreement and amended articles of association, all of which must be properly executed under Dutch law, sometimes requiring notarial deed execution.
