Document background
The Stock Investment Agreement is a fundamental document used in Canadian business transactions when an investor seeks to acquire shares in a company. It is essential for both private and public company investments, though its complexity may vary depending on the investment size and type. The agreement must comply with Canadian federal laws such as the Canada Business Corporations Act and provincial securities regulations. It typically includes detailed terms about the investment structure, share rights, governance provisions, and investor protections. This document is particularly crucial for documenting compliance with securities laws, establishing clear expectations between parties, and providing a framework for the ongoing relationship between the investor and the company. It's commonly used in various scenarios from early-stage investments to late-stage funding rounds, and can accommodate both minority and majority investment positions.
