Stock Subscription Agreement

How To Use

Pre-incorporation agreements are less risky, as a rule, for promoters because courts recognize the high risk and ambiguous state of these emerging enterprises.

These documents can serve to protect subscribers’ interests by writing in various clauses such as anti-dilution stock agreements (e.g., stock can not be diluted until an IPO, is a standard such clause), compensation limitations, percentage share ownership, and the like.

This check list is provided to inform you about this document in question and assist you in its preparation.

  • Make multiple copies. Each subscriber should receive one. The company should keep one copy in the investor file as well in the corporate minutes. Be sure to get signed share certificates receipts, as provided in document form elsewhere in this section.