Record the investment and shareholder rules in one clear agreement

The main issue is usually not just documenting that money is being invested, but also setting the rules that apply after the deal completes. A subscription and shareholders agreement can cover the issue of new shares while also dealing with matters like voting thresholds, board seats, transfer restrictions, pre-emptive rights and exit mechanics. That is often important where founders and investors want clarity on control and future decision-making. If those points are left vague, disagreements can surface later when the company raises more funds, a shareholder wants to exit or key decisions need approval.

These agreements often include the subscription amount, number and class of shares being issued, completion steps, warranties, governance settings, reserved matters, dividend positions, transfer restrictions, pre-emptive rights, drag along and tag along clauses, confidentiality and exit provisions. Some also deal with founder obligations or investor information rights. The exact content depends on the ownership structure and the commercial deal already reached. If there is an existing constitution or earlier shareholder document, the new agreement also needs to work properly alongside those records rather than cutting across them.

Useful inputs usually include your current cap table, the identity of the incoming investor, the number and type of shares being issued, any special rights being discussed, and copies of any existing constitution or shareholder documents. It also helps to know what has already been agreed commercially on board control, voting, transfers and future fundraising. Those details affect how the agreement is structured and whether extra consistency checks are needed. If the commercial position is still moving, we can draft from the latest instructions, but changes to the deal may require corresponding updates to the document.

Often yes, especially where the investment terms are commercially important. A template may use generic clauses that do not fit your share structure, fail to reflect negotiated investor rights, or sit awkwardly with your constitution and company records. It can also blur the difference between what happens at completion and what applies between shareholders on an ongoing basis. That can create confusion if another raise happens, a founder leaves or a transfer is proposed later. A lawyer-drafted agreement is usually more useful where ownership, control and future exit rights need to be expressed clearly.

The timeframe usually turns on how settled the deal terms are and whether the supporting information is available early. Once we have the key details, we prepare the draft agreement and flag any points that need clarification, such as share rights, approval settings or interaction with existing documents. You then review the draft and one round of amendments is included within scope. If the matter expands into negotiations between parties, additional board documents or other transaction documents, that would usually be treated as separate work and quoted separately.

As an online law firm, we eliminate the headaches of paying us by the hour and finding time to meet with a lawyer in person. We charge a fixed fee, with upfront quotes and transparent pricing, and communicate via phone, email and video chat - whichever suits you! You'll be guided through our process by our expert lawyers, who are Australian-qualified and specialise in technology, intellectual property, contract drafting, corporate and commercial law.

At Sprintlaw, our pricing is transparent and designed for startups and small businesses. Many one-off legal services, including document drafting and reviews, are provided for a fixed fee with an upfront quote before you proceed.

Prices typically range from $250 to $2,500 AUD depending on the complexity and scope of the work. For ongoing support, Sprintlaw Memberships include options such as legal templates, consultations, a legal helpline and credits for services.

If your project is larger or more complex, we will provide a tailored quote after understanding what you need.

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