Document background
The Preference Share Agreement is a crucial document used when a Swiss company wishes to issue shares with preferential rights to certain investors. This agreement is particularly relevant in scenarios involving capital raising, corporate restructuring, or strategic investment. It sets out the specific rights and obligations attached to preference shares, including dividend preferences, voting rights, and capital rights, all within the framework of Swiss corporate law. The document must carefully balance the interests of both the issuing company and the preference shareholders while ensuring compliance with Swiss regulatory requirements, particularly the Swiss Code of Obligations. The agreement becomes especially important in private equity investments, venture capital funding rounds, or when companies need to attract investors with enhanced rights without diluting control of existing shareholders.
