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Subscription and Shareholders’ Agreement (Single Investor): Drafting and Negotiation Checklist—Parties, Conditions, Subscription Terms, Warranties, Board, Information Rights, Investor Protections, Transfers, Covenants, Exits and General Provisions

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Parties

Who are the parties involved? In particular, specify:

  • the investor(s)
  • the founders
  • the investee company

Conditions

Are there any pre-conditions to finalising the investment? What must each party do to meet those conditions, and by what deadline?

Share subscription

What is the investee’s capital structure? Which class and how many shares will each shareholder (the investor, the founders and any other shareholders) take up?

Warranties

Who will give the warranties—only the founders, or both the company and the founders? Will they be provided jointly, jointly and severally, or severally? How wide-ranging should the warranties be, and are there priority areas to cover? What limits will govern warranty claims, including:

  • the period within which claims can be brought
  • caps on each warrantor’s liability and on aggregate liability
  • de minimis for individual claims and an aggregate threshold

Board of directors

How many directors will sit on the board? Which founders will serve as directors? How many directors will the investor be entitled to appoint to the board?...

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Web page updated on 20/05/2026

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